Which of the Following Transactions Increases Both Cash and Net

question 124

Multiple Choice

Which of the following transactions increases both cash and net income?

• A)Cash receipts from a bank loan.
• B)Cash receipts from sale of common stock.
• C)Cash receipts from customers for services provided.
• D)Cash receipts from cost of goods solD.Net income is the result of revenues less cost of goods sold and other expenses.Cash receipts from customers increases revenue, which flows through to an increase in net income.Cash receipts also increase the cash account.

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Definitions:

Zone Of Indifference

A range of actions or decisions by authority figures that individuals are willing to accept or comply with without objection.

Shareholder Value

A corporation's commitment to increase the wealth of its stockholders by improving performance, profitability, and share price.

Employee Commitment

Refers to the level of loyalty and dedication an employee feels toward their organization.

Referent Power

A form of power that stems from personal attributes and the respect or admiration one commands from others.