Which of the Following Transactions Increases Both Cash and Net

question 115

Multiple Choice

Which of the following transactions increases both cash and net income?

• A)Cash receipts from a bank loan.
• B)Cash receipts from sale of common stock.
• C)Cash receipts from customers for services provided.
• D)Cash receipts from cost of goods sold.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, having proprietary interests and rights in the corporation.

Software Business

A commercial activity involved in the development, production, and sale of software products or services.

Selling Assets

The act of disposing of property or holdings, typically to raise funds or as part of a strategic business decision.

Selling Shares

The act of disposing of ownership units in a company, usually in the form of stocks, to another party.