Which of the Following Transactions Affects the Liabilities for Gravette

question 25

Multiple Choice

Which of the following transactions affects the liabilities for Gravette, Inc.?

• A) Supplies are purchased for cash by Gravette.
• B) Gravette places an order for merchandise with a supplier; the merchandise will be shipped to Ernest White in 60 days.
• C) The owners of Gravette invest $100,000 in the company.
• D) Payment is made on a bank loan which Gravette had obtained 6 months ago.

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Definitions:

Social Entrepreneurship

An approach to business that seeks to solve social issues or challenges while operating sustainably and generating revenue.

Economic Goals

Targets or objectives related to the financial health and economic policies of a nation, organization, or individual.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, workplace safety, and other employment terms.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.