Recording the Collection of Accounts Receivable by Debiting Cash and Crediting

question 108

Multiple Choice

Recording the collection of accounts receivable by debiting Cash and crediting Revenue

• A) Overstates cash
• B) Understates owner's equity
• C) Overstates assets
• D) Overstates both cash and assets

---

Definitions:

Sales Call

A communication, usually via telephone or in person, initiated by a sales representative to pitch a product or service to a potential customer.

Business Customer

A client who purchases goods or services for business use, as opposed to an individual consumer buying for personal use.

Sales Representative

A professional responsible for selling products or services on behalf of a company, often directly interacting with customers to reach sales targets.

Selling Time

A concept in sales and marketing referring to the optimal moments or periods to pitch or sell products and services to consumers.