Which of the Following Transactions Would Cause a Change in the Amount

question 72

Multiple Choice

Which of the following transactions would cause a change in the amount of a company's working capital?

• A)Collection of an account receivable
• B)Payment of an account payable
• C)Borrowing cash over a 60-day period
• D)Selling merchandise at a price above its cost

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Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the sale.

Profit

The positive difference obtained when expenses are subtracted from revenue.

Used-Car Dealer

A business that specializes in selling pre-owned vehicles to consumers, often offering financing and trade-in services.

Pension

A type of retirement plan where an employee receives compensation from an employer after retirement.