Which of the Following Transactions Increases Both Cash and Net

question 124

Multiple Choice

Which of the following transactions increases both cash and net income?

• A)Cash receipts from a bank loan.
• B)Cash receipts from sale of common stock.
• C)Cash receipts from customers for services provided.
• D)Cash receipts from cost of goods solD.Net income is the result of revenues less cost of goods sold and other expenses.Cash receipts from customers increases revenue, which flows through to an increase in net income.Cash receipts also increase the cash account.

Understand the differences between lean and traditional manufacturing environments.

Identify the characteristics of push and pull manufacturing systems.

Recognize the visibility of problems in a lean environment.

Comprehend the role of customer demand in push and pull systems.

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Definitions:

Present Value

The current estimated value of future money amounts or cash flow sequences, based on a specified return rate.

Annual Interest Rate

The percentage of the principal that a borrower must pay as interest over the course of one year, affecting the total cost of loans or the yield from investments.

Annuity

A monetary instrument offering regular, fixed payments to someone, commonly employed to generate a revenue flow for retired individuals.

Semiannual Interest

Interest that is computed and disbursed semi-annually, commonly associated with bonds and loans.