Which of the Following Transactions Could Not Result in a Credit

question 17

Multiple Choice

Which of the following transactions could not result in a credit balance in a debtor's account?

• A) Receive a deposit from a debtor for goods ordered.
• B) Customer returns a faulty product after they have paid the account in full.
• C) Customer pays their account after the debt had been written off as a bad debt.
• D) Goods are sold on credit with payment due in the next accounting period.

---

Definitions:

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or desires.

Equilibrium Price

The price at which the quantity of a product offered by sellers equals the quantity of the product that buyers are willing to purchase, without any surplus or shortage in the market.

Equilibrium Quantity

The amount of products or services that are both provided and sought after at the balance price, where the supply meets the demand.

Rent Controls

Government-imposed rules that limit the amount landlords can charge for renting out their property, aiming to keep housing affordable.