Which of the Following Statements Correctly Describes the Effect of Recording

question 60

Multiple Choice

Which of the following statements correctly describes the effect of recording the collection of a $10,000 account receivable for which a 2% sales discount was recorded at the time of collection?

• A)Current assets will remain the same.
• B)Gross profit will decrease $200.
• C)Accounts receivable will decrease $9,800.
• D)Net sales will increase $9,800.

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Definitions:

Labour Relations Code

Legislation that regulates the relationship between employers and unions, including the right to collective bargaining and strikes.

Lawful Strike

A work stoppage by a group of workers that is conducted according to legal guidelines and not prohibited by law.

Interest Dispute

A disagreement about the terms to be included in a new collective agreement.

Certification

The process of officially recognizing someone as having a particular status or being qualified to perform a certain activity.