Answered: 1. Your business sells goods to a…

1. Your business sells goods to a credit customer. Which of the following accounts is increased? A. Accounts Receivable B. Cost of sales C. Salea D. All of these

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Multiple choice: 1. Your business sells goods to a credit customer. Which of the following accounts is increased? A. Accounts Receivable B. Cost of sales C. Salea D. All of these 2. The business renders services to clients. A. Sales B. Service fees C. Interest income D. Gain

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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