When a Company Collects from a Customer Who Pays Within

question 162

Multiple Choice

When a company collects from a customer who pays within the discount period,the company:

• A) debits a contra-revenue account.
• B) debits a liability account.
• C) credits a liability account.
• D) debits a revenue account.

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Definitions:

Lab Orders

Refers to the requisitions or requests made by healthcare providers for laboratory tests to be performed.

CD-RW

Compact Disc-ReWritable, a type of CD disc that allows users to write, erase, and rewrite data multiple times.

DVD+R

A recordable DVD format with a storage capacity of 4.7 GB, allowing users to write data to the disc once.

External Hard Drive

A portable storage device used for backing up data from a computer or transferring files between computers, and is external to the internal hard drive.