The Collection of a $400 Account Within the 2 Percent

question 121

Multiple Choice

The collection of a $400 account within the 2 percent discount period would result in a(n)

• A) increase to Accounts Receivable for $392.
• B) decrease to Cash for $392.
• C) increase to Sales Discounts for $8.
• D) decrease to Accounts Receivable for $392.

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Definitions:

Adaptive Framework

A flexible structure or system designed to accommodate change and enable adjustments in response to new conditions or challenges.

Prospector Strategy

A business strategy that focuses on innovation, exploring new markets, and seeking out new opportunities, often characterized by a willingness to take risks.

Innovation

The process of creating new ideas, products, or methods, which bring about significant positive change or improvement.

Retrenchment

The process of reducing staff or costs within an organization as a strategy to improve its financial position.