Which of the Following Does Not Correctly Describe the Effect

question 133

Multiple Choice

Which of the following does not correctly describe the effect of a journal entry involving the recording of a credit card discount?

• A)Net sales decrease and net income decreases.
• B)Net sales decrease,operating expenses increase,and net income remains the same.
• C)Operating expenses remain the same and net income decreases.
• D)Net sales decrease and gross profit decreases.

---

Definitions:

Exchange Rates

The worth of a single currency when converted into another, showing the amount of one currency that can be swapped for a different one.

Purchasing-Power Parity

A theory in economics that compares different countries' currencies through a "basket of goods" approach to assess whether it's undervalued or overvalued.

Real Exchange Rate

A measure of the value of one currency against another, adjusted for inflation differences between the two countries.

Exchange Rate

The rate at which one currency can be exchanged for another, typically used in international trade and finance.