A Business Received $10,000 from a Customer in Payment of an Amount

question 50

Multiple Choice

A business received $10,000 from a customer in payment of an amount owed. The effect of the transaction on the accounting equation was to:

• A) increase one Asset, decrease another Asset.
• B) increase an Asset, increase a Liability.
• C) decrease an Asset, decrease a Liability.
• D) increase an Asset, increase Owner's Equity.

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Definitions:

High Fixed Costs

A financial situation where a company has a high proportion of fixed expenses, which do not vary with the level of production or sales.

High Marginal Costs

Situations where the cost to produce one additional unit is significantly high, often affecting pricing and profitability.

High Industry Growth

Refers to the rapid expansion of economic activity within a particular industry, typically measured by revenue, output, or sales increases.

Concentration of Buyers

Refers to a market situation where a small number of buyers control a large share of the market, potentially affecting pricing and competition.