When You Record the Receipt of a Customer Payment QuickBooks

question 8

Multiple Choice

When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________.

• A)Bank Account, Accounts Receivable
• B)Accounts Payable, Undeposited Funds
• C)Accounts Receivable, Undeposited Funds
• D)Accounts Receivable, Bank Account

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Definitions:

Revenue Account

A revenue account is an account that records the income earned from the sale of goods or the provision of services before any expenses are deducted.

Sales to Total Assets Ratio

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales by total assets.

Cost of Merchandise Sold

The total cost incurred to purchase or produce the goods sold by a company during a specified period, directly affecting the gross profit.

Report Form

A layout for financial statements where the balance sheet is presented with assets followed by liabilities and equity in a vertical format.