Which of the Following Can Be Described as Involving Indirect

question 75

Multiple Choice

Which of the following can be described as involving indirect finance?

• A) You make a loan to your neighbor.
• B) A corporation buys a share of common stock issued by another corporation in the primary market.
• C) You buy a Canadian Treasury bill from the Bank of Canada.
• D) You make a deposit at a bank.

---

Definitions:

Purchases

The acquisition of goods or services by a company for use in its operations or for resale.

Income Summary Account

The income summary account is used during the closing process to compile all income and expense transactions, facilitating the determination of a business's net income.

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.