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.

---

Definitions:

Labor's Share

The portion of national income or output that is allocated to workers in the form of wages, salaries, and benefits.

Interest Rate

The fraction of a loan that incurs interest charges for the borrower, usually indicated as an annual percentage of the remaining loan amount.

Cell A

In the context of matrices or spreadsheets, it typically refers to the top-left cell or the first cell in a table.

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the basis for calculating interest in the next period, occurring once per year.