Which of the Following Transactions Will Result in an Increase

question 105

Multiple Choice

Which of the following transactions will result in an increase in operating income as of the date of the transaction?

• A) The sale of plant and equipment at a gain.
• B) Collection of cash from a customer for services to be provided at a later date.
• C)Providing a service to a customer on account.
• D)The receipt of cash dividends from an investment.

Grasp the concepts and significance of various types of trade agreements and their impact on international trade.

Comprehend the role, structure, and importance of international organizations in global governance.

Differentiate between the concepts of international law and comparative law.

Recognize ethical considerations in international business and their variance across countries.

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Definitions:

Price-Earnings Ratio

A valuation metric that compares a company's share price to its earnings per share.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, but after bankruptcy claim priority behind preferred stock.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Return on Total Assets

A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficient management is at using its assets to generate earnings.