SRJ Corporation Entered into the Following Transactions: • the Accrual

question 29

Multiple Choice

SRJ Corporation entered into the following transactions: • The accrual of interest expense on a six-month note payable.
• Collected cash for services to be provided within the next six months.
• The reclassification of short-term debt to long-term debt.
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Which of the transactions for SRJ Corporation resulted in an increase in working capital?

• A)The accrual of interest expense.
• B)Collecting cash for services to be provided in the future.
• C)The reclassification of short-term debt to long-term debt.
• D)Both the reclassification of short-term debt to long-term debt and the collection of cash for future services.

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Definitions:

Rebates

A partial refund to someone who has paid too much for tax, rent, or a utility, or as a promotional incentive offered by manufacturers or retailers after purchase.

Samples

Small quantities or instances of a product or material used for testing, evaluation, or demonstration purposes to gauge its characteristics or the population’s response.

Controlled Experiments

A research method where variables are manipulated to observe the effect on a dependent variable, often used to establish causal relationships.

Product Samples

Small quantities of a product given away for free to customers for the purpose of trial and evaluation.