The Purchase of $100,000 of Equipment by Issuing a Note

question 49

Multiple Choice

The purchase of $100,000 of equipment by issuing a note would be reported:

• A)as a $100,000 investing inflow,and a $100,000 financing outflow.
• B)as a $100,000 investing outflow,and a $100,000 financing inflow.
• C)as a $100,000 operating inflow,and a $100,000 financing outflow.
• D)in a supplementary schedule.

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Definitions:

Total Utility

The complete enjoyment or advantage gained from the consumption of a specified overall amount of a product or service.

Expected Value

The anticipated value of an investment in the future, taking into account various possible outcomes weighted by their respective probabilities.

Disability Insurance

A type of insurance that provides income in the event that a worker is unable to perform their work and earn money due to a disability.

Total Utility

The complete fulfillment gained from the consumption of a specific quantity of products or services.