A $10 000 Receipt Was Received from an Accounts Receivable;as

question 49

Multiple Choice

A $10 000 receipt was received from an accounts receivable;as a result:

• A) an asset decreased and an expense decreased.
• B) an asset decreased and another asset increased.
• C) an asset decreased and an expense increased.
• D) a liability decreased and an expense increased.

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Definitions:

Schedule C

A form used by sole proprietors to report their business income and expenses to the IRS.

Flow-Through Entities

Business structures where income passes directly to the owners or investors, avoiding corporate income tax.

Intangible Property

Refers to non-physical assets owned by a business or individual, such as patents, trademarks, copyrights, and business goodwill.

Capital Improvements

Permanent structural changes or restorations to a property that enhance its value, prolong its useful life, or adapt it to new uses, with potential tax impacts.