Which of the Following Does Not Correctly Describe the Following

question 90

Multiple Choice

Which of the following does not correctly describe the following journal entry?

• A)Current assets decrease.
• B)Gross profit decreases.
• C)Net sales decreases.
• D)Net income is not affected.

Understand and calculate the target profit in pricing decisions.

Understand cost-plus pricing strategies and how markup percentages are calculated from total variable costs and full costs.

Gain knowledge on the relationship between production costs, mark-up percentages, and final product pricing.

Understand the technique of time and material pricing for services.

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Definitions:

Bank Statement

A monthly document provided by a bank detailing all transactions in a customer's account for a given period.

Note Receivable

A financial asset representing a written promise from a borrower to pay a certain sum of money to the lender at a future date.

Interest Collected

The amount of money received by an entity as interest from loans, investments, or savings accounts.

Journalize

The process of recording business transactions in the journal of an accounting system.