Exchange Company Collected $14,000 from One of Its Customers,the Amount

question 69

Multiple Choice

Exchange Company collected $14,000 from one of its customers,the amount owed from the previous month.How does this affect the accounting equation for Exchange?

• A)assets increase by $14,000;liabilities decrease by $14,000
• B)assets increase by $14,000;assets decrease by $14,000
• C)assets increase by $14,000;liabilities increase by $14,000
• D)assets increase by $14,000;equity increases by $14,000

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Definitions:

Traditional Costing Systems

Costing methods that allocate manufacturing overhead costs to products based on a single measure of activity, such as direct labor hours.

Activity Information

Data related to specific actions or operations within a company, used to analyze performance or make decisions.

Comprehensive

Including or dealing with all or nearly all elements or aspects of something.

Optimal Product Costing

Refers to the process of determining the best cost allocation for a product to maximize profitability while maintaining competitive pricing and ensuring product quality.