Which of the Following Transactions Increases Both Cash and Net

question 120

Multiple Choice

Which of the following transactions increases both cash and net income?

• A)Cash receipts from a bank loan.
• B)Cash receipts from sale of stock.
• C)Cash receipts from customers for services provided.
• D)Cash receipts from a bond issue.

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Definitions:

Risky Undertaking

An action or project that involves a high degree of uncertainty or danger regarding its outcome or success.

Expected Value

A calculation in probability and statistics that shows what to predict as the outcome on average over many trials.

Investment

The allocation of resources, typically money, with the expectation of generating an income or profit.

Investment

The allocation of resources, such as time, money, or effort, in the expectation of generating a future return.