Transaction Analysis and the Accounting Equation Have Been Used to Record

question 25

Multiple Choice

Transaction analysis and the accounting equation have been used to record several transactions for a company.The transactions are now recorded on a multi-column spreadsheet.When preparing a statement of retained earnings with this spreadsheet,which column would be used?

• A)Cash
• B)Accounts Receivable
• C)Retained Earnings
• D)Revenue

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Definitions:

Debt Collector

A person or company tasked with collecting money owed on past due accounts from debtors.

Original Terms

The initial conditions and stipulations as set forth in an agreement or contract, before any amendments or modifications.

Creditor Beneficiary

A third party that benefits from a contract, particularly in contexts where the promisee's intention is to pay a debt to the beneficiary.

Promisor Directly

Pertains to the person who has made a promise or commitment being the one to fulfill that obligation without intermediaries.