When a Sale on Credit Is Made Under the Accrual

question 43

Multiple Choice

When a sale on credit is made under the accrual 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:

Unfreezing

The initial stage in the change process where previous behaviors are questioned or deemed ineffective, making room for new behaviors to be adopted.

Refreezing

A stage in the change process where new behaviors or norms are solidified into the culture, ensuring stability and sustaining the change.

E-commerce Program

A structured plan or framework that outlines how to conduct business transactions over the internet including buying, selling, marketing, and servicing of products or services.

Tenured Faculty

Faculty members who have been granted permanent employment status, typically after a probationary period, providing them with job security and academic freedom.