When Accounts Receivable Is Credited, It Indicates

question 93

Multiple Choice

When Accounts Receivable is credited, it indicates

• A) a decrease in the amount owed to creditors.
• B) an increase in the amount owed to creditors.
• C) an increase in the amount owed by customers.
• D) a decrease in the amount owed by customers.

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Definitions:

Limited Partnership

A type of partnership composed of one or more general partners who manage the business and are personally liable, and one or more limited partners who contribute capital and have limited liability.

Capital Contribution

The act of providing capital, either in the form of money or other assets, to a company or partnership by its owners or partners.

General Partner

An owner of a partnership who has unlimited liability and is typically involved in the day-to-day management of the business.

Trust Funds

Financial funds legally held by a trustee for the benefit of another party, known as the beneficiary.