The Collection of a $1,000 Account Beyond the 2 Percent

question 122

Multiple Choice

The collection of a $1,000 account beyond the 2 percent discount period would result in a(n)

• A) increase to Cash for $980.
• B) decrease to Accounts Receivable for $1,000.
• C) decrease to Cash for $1,000.
• D) increase to Sales Discounts for $20.

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Definitions:

Autonomic Responses

Involuntary activities of the body controlled by the autonomic nervous system, such as heart rate and digestion.

Electrical Potentials

The difference in the electric charge between two points in a circuit expressed in volts.

Guilty-knowledge Test

A psychological assessment where the subject's recognition of certain information is tested to infer their familiarity due to involvement in a specific event or crime.

Physiological Processes

Biological functions and activities carried out by living organisms to maintain life, such as respiration, digestion, and regulation of body temperature.