Receiving Cash from a Customer on Account Would Include A

question 56

Multiple Choice

Receiving cash from a customer on account would include a:

• A) debit to Accounts Receivable and a credit to Cash
• B) debit to Cash and a credit to Accounts Payable
• C) debit to Accounts Payable and a credit to Cash
• D) debit to Cash and a credit to Accounts Receivable

Understand the implications of incorrect or incomplete filing procedures for business entities.

Describe the rights and duties of LLC members.

Distinguish between various types of business organizations in terms of structure and liability.

Understand the dissolution process of a limited partnership and the distribution of assets.

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Definitions:

Proportional Usage

The allocation of costs, resources, or time in direct relation to the amount of goods or services produced or consumed.

Direct Method

An accounting practice in cash flow statement preparation where actual cash flows from operating activities are listed, as opposed to the indirect method.

Support Departments

Parts of an organization that do not directly produce goods or services but provide support or services to the departments that do.

Janitorial Department Costs

Expenses relating to the maintenance and cleaning of a building or facility, typically managed by a janitorial department.