When an Invoice Is Created in QuickBooks Using the Create

question 12

Multiple Choice

When an invoice is created in QuickBooks using the Create Invoices window,QuickBooks:

• A)Decreases a Sales account and decreases the Checking account
• B)Increases a Sales account and increases the Accounts Receivable account
• C)Increases the Accounts Receivable account and increases the Checking account
• D)Decreases the Accounts Payable account and increases the Checking account

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Definitions:

Discretionary Cost

Costs that are not essential for the operation of a home or business and can be adjusted or eliminated depending on financial circumstances.

Condensed Income Statement

A simplified financial statement that summarizes revenues, costs, and expenses to show a company's net income over a specific period.

Discontinuance

The action of stopping the production or sale of a product or service, often as a result of strategic business decisions.

Fixed Costs

Costs that tend to remain the same in amount, regardless of variations in the level of activity.