Which of the Following Transactions Will Increase the Quality of Income

question 70

Multiple Choice

Which of the following transactions will increase the quality of income ratio?

• A)Paying cash to suppliers.
• B)Accruing sales revenue.
• C)Selling treasury stock for more than its cost.
• D)Collecting an account receivable.

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Definitions:

Fractions

Portions of a whole number, symbolized by two integers separated by a slash, with one part representing a portion of the whole.

Whole Numbers

Numbers without fractions or decimals; positive integers including zero.

Lowest Terms

The most reduced form of a fraction, where the numerator and denominator are at their smallest whole number ratio.

Fractions

Represents parts of a whole or a collection, expressed with different numbers on the top (numerator) and bottom (denominator) of a slash or line.