Evidence That Would Not Help with Determining the Effects of a Transaction

question 185

Multiple Choice

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

• A) cash register sales tape.
• B) bill.
• C) advertising brochure.
• D) check.

---

Definitions:

Capital Structure

The combination of a business's long-term loans, particular short-term borrowings, common stock, and preferred stock, employed to fund its general activities and expansion.

Retained Earnings

The portion of a company's profits that are kept within the company instead of being paid out to the shareholders as dividends.

Issuing Shares

The process by which a company sells new shares to investors in order to raise capital.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.