Which of the Following Transactions Decreases the Quality of Income

question 114

Multiple Choice

Which of the following transactions decreases the quality of income ratio?

• A)The cash purchase of equipment.
• B)The issue of stock in exchange for cash.
• C)Collecting cash for services to be provided in the future.
• D)Earning revenue that was previously recorded as unearned revenue.

---

Definitions:

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without conscious intention to deceive.

Priming

A psychological phenomenon in which exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Long-term Potentiation

A long-lasting increase in signal transmission between two neurons that results from their simultaneous activation, often considered a cellular mechanism for learning and memory.

Deep Processing

A method of learning in which information is analyzed in a meaningful way as opposed to merely memorized.