Which of the Following Transactions Results in an Increase in Revenues

question 201

Multiple Choice

Which of the following transactions results in an increase in revenues?

• A) Sale of a service on credit
• B) Receipt of cash from bank loan
• C) Sale of land at cost for cash
• D) Collection of cash on account

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Definitions:

Finished Goods Inventory

Refers to the inventory of goods that are completed and ready for sale.

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead, up to the point of completion.

Raw Materials

Primary components used to produce or fabricate products.

Direct Labor

The wages and expenses directly associated with workers who physically produce goods or provide services.