Connink, a Software Development Firm, Invested on Developing New Products

question 123

Multiple Choice

Connink, a software development firm, invested on developing new products from the company's earnings from the previous year. Which of the following sources of long-term funds is being used by Connink in the given scenario?

• A) Long-term debt
• B) Direct investments from owners
• C) Term loans
• D) Corporate bonds

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Definitions:

Note Receivable

A written promise for the payment of a specified amount of money, by a debtor to the lender, with interest, at a future date.

Journalize

The process of recording financial transactions in a journal, which is the first step in the accounting cycle.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and correct.

Adjusted Balance

The account balance after adjustments have been made for interest, payments, and charges.