Which of the Following Transactions Would not Be Considered

question 44

Multiple Choice

Which of the following transactions would not be considered an external exchange?

• A)The purchase of supplies on credit.
• B)Cash received from the issuance of common stock.
• C)Cash paid to a bank for interest on a loan.
• D)Using up insurance,which had been paid for in advance.

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Definitions:

Vending Machines

Automated machines that sell products such as snacks, beverages, or tickets to consumers after money, a credit card, or a specially designed card is inserted into the machine.

Working Capital

The disparity between an enterprise's existing assets and current debts, demonstrating its short-term financial status and operational performance.

Discount Rate

In discounted cash flow analysis, the interest rate that is used to evaluate the present value of anticipated cash flows.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the total value today of a series of future cash flows, adjusting for the time value of money.