The Two Primary Classes of Transactions in the Sales and Collection

question 55

Multiple Choice

The two primary classes of transactions in the sales and collection cycle are

• A) sales and sales discounts.
• B) sales and cash receipts.
• C) sales and sales returns.
• D) sales and accounts receivable.

---

Definitions:

Behavioral Economics

This discipline of economics examines the role of psychological, cognitive, emotional, cultural, and social aspects in shaping the economic choices of both individuals and institutions.

Neoclassical Economics

A framework within economics that focuses on the determination of goods, outputs, and income distributions in markets through supply and demand.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Fairness

The impartial and just treatment without favoritism or discrimination; in economics, often related to equitable distribution of resources and opportunities.