Which of the Following Is Correct, Assuming the Following Transaction

question 20

Multiple Choice

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

• A) Cash is credited.
• B) Accounts Receivable is credited.
• C) Income from Services is credited.
• D) Cash is debited.

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Definitions:

Release

A legal document or agreement that relinquishes rights, claims, or interests from one party to another, often used to resolve disputes or acknowledge payment.

Waiver

A waiver is the voluntary relinquishment or surrender of some known right or privilege.

Statute of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

Proximate Cause

A principle in law that denotes the primary cause of an injury, used to establish the direct link between an act and the injury suffered.