An Owner Invests $20,000 in Her New Business by Depositing

question 85

Multiple Choice

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is debited?

• A) Accounts receivable
• B) Cash
• C) Capital
• D) Accounts payable

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Definitions:

Price Volatility

The degree of variation in the price of a financial instrument over a certain period, indicating the risk or stability of the asset.

Treasury Notes

Medium-term interest-bearing securities issued by the U.S. government with maturity periods typically between 1 and 10 years.

Commercial Paper

A short-term, unsecured promissory note issued by corporations with high credit ratings to fund immediate operational needs.

Chartered Financial Analyst

A professional designation given by the CFA Institute that measures the competence and integrity of financial analysts.