An Accounting Firm Collected Cash on Account

question 245

True/False

An accounting firm collected cash on account.As a result of this transaction,assets and revenues increase.

---

Definitions:

Working Capital

The gap between what a business owns in current assets and owes in current liabilities, showing the available liquidity to cover daily operational costs.

Salvage Value

The anticipated amount an asset is expected to sell for once it reaches the end of its life span.

Pretax Return

The income or profit earned by a business before the deduction of tax.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.