Which of the Following Transactions Results in an Increase in Revenues

question 104

Multiple Choice

Which of the following transactions results in an increase in revenues?

• A)Receipt of accounts receivable.
• B)Purchase of inventory.
• C)Receipt of principal from a bank loan.
• D)Delivery of a service in exchange for future payment.

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Definitions:

Contra Account

An account used in the ledger to offset a related or a parent account, often showing the amount of reductions or adjustments to the main account.

Sales Account

An account in the general ledger that records the sales of goods or services.

Uncollectible Accounts

Accounts receivable that a business does not expect to collect due to customers being unable or unwilling to pay.

Estimated

An approximation or informed guess of a value, amount, or size based on available data or trends but not derived from exact calculations.