Collected a Payment from a Credit Customer

question 125

Multiple Choice

Collected a payment from a credit customer.This will be recorded with:

• A)a credit to an asset account.
• B)a credit to a liability account.
• C)a credit to Revenue.
• D)None of these is correct.

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Definitions:

Variable Cost

Expenses that vary proportionally with the level of production or service output, such as materials or labor costs.

Capacity

The maximum amount of work or production an organization is capable of completing in a specified period.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to present value using a specific rate, often used in capital budgeting.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.