Business Finance Chapter 14 Final

CHAPTER 14

Multiple-Choice Questions

|1. |Which of the following is not an account affected by the sales and collection cycle? |

|easy |a. Cash |

|d |b. Accounts receivable |

| |c. Allowance for doubtful accounts |

| |d. Gross margin |

| | |

|2. |Which of the following is not one of the five classes of transactions included in the sales and collection cycle? |

|easy | |

|d |a. Sales returns and allowances |

| |b. Charge-off of uncollectible accounts |

| |c. Bad debt expense |

| |d. Depreciation expense |

| | |

|3. |What event initiates a transaction in the...