Which of the Following Can Be Described as Involving Direct

question 134

Multiple Choice

Which of the following can be described as involving direct finance?

• A)A corporation issues new shares of stock.
• B)People buy shares in a mutual fund.
• C)A pension fund manager buys a short-term corporate security in the secondary market.
• D)An insurance company buys shares of common stock in the over-the-counter markets.

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Definitions:

Revenue And Receivables

The income generated from normal business operations and the claims to cash or other assets by an entity, usually resulting from sales transactions.

Voluntary Health And Welfare Entities

Organizations that operate for the purpose of promoting health and welfare, primarily relying on voluntary contributions from the public.

Classifications

The systematic arrangement of business transactions or elements in categories according to established criteria.

Expenses

Costs incurred by a business in the process of earning revenues.