There Are Five Classes of Transactions in the Sales and Collection

question 52

Multiple Choice

There are five classes of transactions in the sales and collection cycle. Which is NOT one of them?

• A) Cash receipts
• B) Sales on account
• C) Depreciation allowance
• D) Cash sales

---

Definitions:

Shareholder's Derivative Suit

A lawsuit filed by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, alleging harm to the corporation.

Dividend

A distribution of corporate profits or income ordered by the directors and paid to the shareholders.

Direct Suit

A legal action initiated directly against an individual or entity without the need for intermediary processes.

Administrative Complaint

A formal allegation or charge filed with a governmental or regulatory agency, often related to violations of laws or regulations.