When a Sale on Credit Is Made Under the Cash

question 73

Multiple Choice

When a sale on credit is made under the cash basis of accounting, at the time of the sale, how is the transaction recorded?

• A)An increase in assets and an increase in liabilities
• B)An increase in assets and an increase in revenues
• C)An increase in liabilities and an increase in revenues
• D)It is not recorded.

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Definitions:

Constraint

A limitation or restriction on a system, process, or variable in mathematical and scientific contexts.

Objective Function

A mathematical function that represents the objective of an optimization problem, usually to be maximized or minimized.

Solver

A software tool or function that finds the optimal solution to a mathematical problem or equation by varying multiple variables within constraints.

Personnel Limitation

Constraints or restrictions related to the number or capabilities of staff available for a project or operation.