When a Company Collects from a Customer Who Pays Within

question 162

Multiple Choice

When a company collects from a customer who pays within the discount period,the company:

• A) debits a contra-revenue account.
• B) debits a liability account.
• C) credits a liability account.
• D) debits a revenue account.

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Definitions:

Medium

The channel or method through which a message or information is transmitted from sender to receiver.

Lawyers

Professionals who practice law, advising and representing individuals, businesses, and government agencies on legal issues and disputes.

Accountants

Professionals responsible for managing and examining financial records, ensuring accuracy and compliance with laws.

Specialists

Individuals with expertise or focus in a specific field or area, often possessing advanced knowledge or skills.