A Credit to an Asset Account Indicates A(n)

question 29

Multiple Choice

A credit to an asset account indicates a(n)

• A) error.
• B) credit was made to a liability account.
• C) decrease in the asset.
• D) increase in the asset.

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Definitions:

Weighted Average Delay

implies the average time delay in a process or system, adjusted for the importance or frequency of each delay component.

Collection Delay

The time lapse between when a payment is made by a customer and when the funds become available to the recipient company.

Average Amount

The mean sum of a group of numbers, calculated by dividing the total by the quantity of numbers.

Weighted Average Float

The average time between when a check is deposited in a bank and when the funds are available.