Which of the Following Transactions Would Cause One Asset to Decrease

question 83

Multiple Choice

Which of the following transactions would cause one asset to decrease and another asset to increase?

• A)The business provided services to a cash customer.
• B)The business bought supplies for cash.
• C)The owner withdrew cash from the business.
• D)The business bought supplies on account.

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Definitions:

Budgeted Selling Price

The anticipated amount for which a product or service is expected to sell, as determined during the budgeting process.

Master Budget

A comprehensive financial planning document that consolidates all of a company's budgets, including sales, production, and various operational budgets.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.