Which Classification of Business Goods Is Usually Consumed Over a Long

question 17

Multiple Choice

Which classification of business goods is usually consumed over a long period and usually involves large sums of money?

• A) Convenience items
• B) Capital items
• C) Installations
• D) Expense items

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Definitions:

Operating Activities

Pertains to the primary day-to-day activities of a business, such as selling products or services, which are reflected in the cash flow statement.

Net Cash

The balance of cash remaining once cash inflows and outflows have been accounted for during a specific period.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing debt, obtaining loans, and returning capital to shareholders.

Net Cash

The amount of cash available after accounting for all cash inflows and outflows within a specific period.