Which of the Following Transactions Would Be Appropriately Processed in the Sales/collection

question 3

Multiple Choice

Which of the following transactions would be appropriately processed in the sales/collection process?

• A)THT Corporation purchased merchandise on account from HRS Corporation.
• B)HRS Corporation received cash from THT Corporation for a previous sale on account.
• C)Both THT Corporation purchased merchandise on account from HRS Corporation and HRS Corporation received cash from THT Corporation for a previous sale on account.
• D)Neither THT Corporation purchased merchandise on account from HRS Corporation nor HRS Corporation received cash from THT Corporation for a previous sale on account.

---

Definitions:

Natural Gas Reserve

Quantities of natural gas that are discovered and are recoverable under current economic and operating conditions.

Present Value

The value at present of future monetary amounts or streams of cash, when calculated with an agreed-upon rate of profit.

Profit Per Unit

The profit earned by a company for each unit of product sold.

Present Value

The immediate worth of a prospective sum of money or sequence of cash flows, with a defined yield rate factored in.