In Systems Theory,the Raw Materials,human Resources,and Financial Resources of an Organization

question 71

Multiple Choice

In systems theory,the raw materials,human resources,and financial resources of an organization are examples of

• A)inputs.
• B)feedback loops.
• C)transformation processes.
• D)outputs.
• E)sources of error.

Identify what constitutes income and the exclusion of owner contributions from income.

Differentiate between settlements of liabilities and contributions by owners.

Describe how equity is affected by profit, loss, and owner contributions.

Understand the recognition criteria for elements of financial statements.

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and outflows within a specific period.

Decrease in Accounts Receivable

A reduction in the amount of money owed to a business by its customers for goods or services delivered on credit.

Non-Operating Gains

Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.

Retirement of Notes Payable

The process of paying off or settling a debt obligation represented by promissory notes.