Selling Accounts Receivable Typically

question 177

Multiple Choice

Selling accounts receivable typically:

• A)decreases total assets and increases revenues.
• B)decreases total assets and increases expenses.
• C)increases total assets and increases revenues.
• D)has no effect on total assets and decreases expenses.

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Definitions:

Flexible Budget

A budget that is adaptable and varies according to the changes in activity level or volume.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of taxes and interest.

Facility Expenses

Costs associated with the physical locations a business operates, including utilities, maintenance, and rent or mortgage payments.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate financial planning.