Which of the Following Transactions Changes the Mix of Assets

question 65

Multiple Choice

Which of the following transactions changes the mix of assets only?

• A) Paid for supplies with cash.
• B) Borrowed money from Second National Bank.
• C) Received money for fees earned.
• D) Received a utility bill.

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Definitions:

Credit Sales

Sales transactions where the customer is allowed to pay at a later date, typically generating accounts receivable.

Bad Debt Expense

Represents the expense associated with accounts receivable that a company does not expect to collect.

Service Charge Expense

Costs charged to customers for services provided, including fees for maintenance, support, or other service-related activities.

Accounts Receivable

Money owed to a business by its clients for goods or services provided on credit.