Which One of the Following Transactions Increases a Business's Working

question 7

Multiple Choice

Which one of the following transactions increases a business's working capital?

• A) Depreciation of £2000 is charged to profit and loss account
• B) A fixed asset is sold for cash
• C) A debtor pays an amount due of £6000
• D) The owner draws £1000 for personal use

Comprehend how individuals assess events, responsibility, and personal qualities through attribution.

Recognize the selective nature of perception and its effects on information processing.

Identify perceptual errors and their implications in organizational evaluations.

Understand the bias in underestimating situational factors versus overestimating personal factors.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, indicating improvements in living standards and economic health.

International Competitiveness

The ability of a country to produce goods and services at a lower price and higher quality than its international competitors.

Economic Fluctuations

Variations in the growth rate of an economy over a period of time, characterized by cycles of expansion and contraction.

Regressive Income Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.