Which of the Following Transactions Will Result in an Increase

question 105

Multiple Choice

Which of the following transactions will result in an increase in operating income as of the date of the transaction?

• A) The sale of plant and equipment at a gain.
• B) Collection of cash from a customer for services to be provided at a later date.
• C)Providing a service to a customer on account.
• D)The receipt of cash dividends from an investment.

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Definitions:

District of Columbia

The capital of the United States, Washington D.C., which is not part of any state.

Predominant-Purpose Test

The predominant-purpose test is a legal principle used to determine the character of a contract based on its primary objective, especially in mixed contracts involving elements of both goods and services.

Article 2

A section of the Uniform Commercial Code that governs the sale of goods in the United States.

Article 2(A)

Generally refers to a specific section within a broader legal document or statute, often needing context for precise definition.