Which of the Following Transactions Increases the Quality of Income

question 111

Multiple Choice

Which of the following transactions increases the quality of income ratio?

• A)The cash payment of an account payable.
• B)The payment of a cash dividend.
• C)A decrease in receivables.
• D)The accrual of revenue.

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Definitions:

Actual Usage

The real amount of resources consumed or utilized in the production of goods or provision of services.

Standard Material

A benchmark or norm for the quality and type of materials used in the production of goods, aiding in cost control and budgeting.

Service Company

A business that provides services to consumers or other businesses rather than manufacturing goods.

Planning Budget

A budget established at the beginning of the budgeting period that is valid only for the planned level of activity.