An Example of Direct Finance Would Be

question 1

Multiple Choice

An example of direct finance would be

• A)your professors deposits his or her salary in a checking account.
• B)you purchase stock in IBM from a stock broker.
• C)you use your ATM card to get cash on the weekend.
• D)your employer makes a contribution to your pension fund.

---

Definitions:

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Liabilities

Financial obligations or debts owed by a company to creditors, typically classified as either current or long-term.

Contingent Liability

A potential obligation that may be incurred depending on the outcome of a future event or set of circumstances.

Net Income

The net income of a business once all deductions including expenses, taxes, and other costs are taken from the total earnings.