Which of the Following Revenue Related Transactions Is Not Linked

question 51

Multiple Choice

Which of the following revenue related transactions is not linked to the accounts indicated?

• A)Recognize revenues too early--accounts receivable and revenue.
• B)Understate allowance for doubtful accounts--Bad debt expense, allowance for doubtful accounts.
• C)Don't write off uncollectible receivables--sales returns, sales discounts.
• D)Don't record discounts given to customers--Cash, sales discounts, accounts receivable.

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Definitions:

Future Generations

Refers to the members of society or communities that will live in the future, often considered in discussions of sustainability and inheritance.

Budget Deficit

Occurs when a government's expenditures exceed its revenues over a set fiscal period, leading to a shortfall that must be borrowed.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.

Deficit

A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.