Which of the Following Items Has No Effect on Owner's

question 55

Multiple Choice

Which of the following items has no effect on owner's equity?

• A)Receipt of cash owed to the business (accounts receivable)
• B)Sale of a service
• C)Payment of an expense
• D)Withdrawal by the owner

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Definitions:

Experience-curve Pricing

A pricing strategy that utilizes the cost savings gained from learned efficiency as production volume increases over time.

Cost-plus Pricing

A strategy for setting prices that involves adding a defined markup to the cost of each unit of a product.

Experience-curve Pricing

A pricing strategy that takes into account the reductions in unit costs as cumulative volume increases, due to gained efficiency and experience.

Experience-curve Pricing

A pricing strategy that lowers the cost of a product over time as the production processes become more efficient with experience.