A Sale on Account Would Be Recorded By

question 84

Multiple Choice

A sale on account would be recorded by:

• A) Debiting revenue.
• B) Crediting assets.
• C) Crediting liabilities.
• D) Debiting assets.

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Definitions:

Long Position

Holding an asset with the expectation that it will increase in value, often contrasted with taking a short position, betting on a decline in value.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Futures Exchanges

Marketplaces where futures contracts and options on futures contracts are traded, facilitating the buying and selling of commodities or financial instruments at a predetermined future date.

Delivery Date

The specific date on which a financial transaction, especially pertaining to futures or options contracts, is scheduled to be settled or executed.