Which of the Following Does Not Correctly Describe the Effect

question 32

Multiple Choice

Which of the following does not correctly describe the effect of recording a credit sale of inventory for a profit?

• A)Sales are recorded when title and risks of ownership are transferred to the buyer.
• B)Current assets increase.
• C)Gross profit increases.
• D)Operating expenses increase.

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Definitions:

Intended Strategies

These are strategies that an organization plans and decides to implement in order to achieve specific goals or objectives.

Organizational Planning

The process of setting goals and defining the steps needed to achieve them within an organization.

Emergent Strategy

A strategy that arises in the absence of an intentional course of action, developing through patterns in the organization's decisions over time.

Broad Guidelines

General instructions or principles that provide direction to action or behavior.