Consider the following transactions: (i)Borrows $1m from the bank.
(ii)Collects $100 000 from accounts receivable.
(iii)Receives $90 000 from a client for work to be done in the next accounting period.
(iv)Sale of inventory (costing $70 000)on credit for $200 000.
Which of the above transactions do NOT increase revenue?
A) (ii)and (iii)only
B) (iii)and (iv)only
C) (ii)and (iv)only
D) (i), (ii)and (iii)

Question

Quizplus · Accepted Answer

Transactions (i) borrowing money, (ii) collecting accounts receivable, and (iii) receiving money for work to be done in the future do not increase revenue. Transaction (iv) is a sale of inventory, which does increase revenue.

Consider the Following Transactions: (I)Borrows $1m from the Bank