Put the Following Steps of the Financial Cycle in the Correct

question 78

Multiple Choice

Put the following steps of the financial cycle in the correct order: I. Money flows to companies who use it to fund growth through new products
II. People invest and save their money
III. Money flows back to savers and investors

• A)II, I, III
• B)II, III, I
• C)III, II, I
• D)I, II, III

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Definitions:

Asset Account

An account on a company's balance sheet that represents a resource with economic value that is controlled or owned.

Going Concern Assumption

The assumption that the company will continue in operation for the foreseeable future.

Accounting Principles

Fundamental guidelines or rules that govern the field of accounting and ensure the accuracy and consistency of financial statements.

Accrued Revenues

Income recognized on the income statement but not yet received in cash or recorded by the company.