Would Result in an Increase in Income Under the Cash

question 50

Multiple Choice

would result in an increase in income under the cash basis but not an increase in income under the accrual basis.

• A) The return of defective inventory purchased on account to a supplier where a full credit was given
• B) The cash sale of inventory at a sales price in excess of the inventory's cost
• C) The cash collection from a credit customer
• D) The credit sale of inventory at a sales price in excess of the inventory's cost

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Definitions:

Reinforcement Theory

A theory in psychology that suggests behavior is motivated by its consequences, with reinforcement used to increase or decrease specific behaviors.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Variable Ratio Schedules

In behavioral psychology, a reinforcement schedule where a response is rewarded after an unpredictable number of responses, enhancing motivation to respond.

Extinction

The process of eliminating a behavior by stopping the reinforcement that previously followed that behavior, often used in behavioral psychology and organizational management.