Which of the Following Is NOT One of the Five

question 26

Multiple Choice

Which of the following is NOT one of the five classes of transactions in the sales and collection cycle?

• A) write-off of uncollectible accounts
• B) sales returns
• C) payroll for sales staff
• D) cash sales

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Definitions:

Agreement

A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events—an offer by one party to form a contract, and an acceptance of the offer by the person to whom the offer is made.

Illegal Contract

A contract that is void and unenforceable from the outset because it involves activities that are against the law or public policy.

Restitution

The act of compensating for loss, damage, or injury caused, often involving the return of stolen or lost property to the rightful owner.

Partially Executed

Refers to a contract or agreement where some, but not all, of the required actions have been completed by the parties involved.