Which of the Following Transactions Does Not Affect the Total

question 80

Multiple Choice

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

• A)A bill is received for the telephone service used by Vertican Sailing during the past month.
• B)Cash dividends are paid by Vertican Sailing.
• C)Customers are billed for sales made on credit by Vertican Sailing.
• D)A new computer is purchased on credit by Vertican Sailing.

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Definitions:

Market Price

The actual price at which any commodity is available in the market, determined by supply and demand.

Profit

The financial gain achieved when the revenue from business activity exceeds its costs and expenses.

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grain, fruits, and vegetables.

Profit-maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit in a business.