Mick's Mart Collects $100 of Its Accounts Receivable

question 34

Multiple Choice

Mick's Mart collects $100 of its accounts receivable. The expanded accounting equation impact is:

• A) Cash and Capital increase $100.
• B) Cash and Revenue increase $100.
• C) Cash increases and Accounts Receivable decreases $100.
• D) Accounts Receivable decreases and Capital increases $100.

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Definitions:

Spot Rates

The present cost at which a specific asset is available for purchase or sale with immediate delivery.

Selling Price

The amount of money for which an item is sold to a buyer.

Hedge Transaction

A financial agreement or trade designed to reduce or eliminate the risk of future price fluctuations.

Forward Rate

A future exchange rate negotiated today, locking in the price at which a currency transaction will occur at a specified future date.