On June 1 Barlow Inc

question 156

Multiple Choice

On June 1 Barlow Inc.performed services and billed its client Bertram Enterprises $1500.On June 9 Bertram paid the account in full.The combined effect of these two transactions on Barlow's tabular analysis is:

• A)Increase Cash $1500 and decrease Accounts Receivable $1500.
• B)Increase Cash $1500 and increase Revenues $1500.
• C)Increase Accounts Receivable $1500 and increases Revenues $1500.
• D)Increase Accounts Payable $1500 and increases Expenses $1500.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders.

Interest Rate Swap

A financial derivative contract in which two parties agree to exchange one stream of interest payments for another, based on a specified principal amount.

Fixed Rate

A fixed rate refers to an interest rate for a loan or mortgage that remains constant over the term of the loan.