Receiving Cash from an Account Receivable

question 16

Multiple Choice

Receiving cash from an account receivable:

• A)Increases revenue and decreases an asset.
• B)Decreases a liability and increases an asset.
• C)Increases an asset and increases revenue.
• D)Increases one asset and decreases another asset.

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Definitions:

Percentage of Sales

A financial ratio that compares a company's expenses or profits to its total sales, often used to analyze efficiency or profitability.

Perquisites

Special nonmonetary benefits given to executives; often referred to as perks

Country Club Membership

Affiliation with a private club offering recreational sports and social activities, often including access to golf courses and dining facilities.

Former CEO

An individual who previously held the chief executive officer position in a company, responsible for strategic decision-making and overall management.