Which of the Following Cash Transactions Results in No Net

question 15

Multiple Choice

Which of the following cash transactions results in no net change in assets?

• A)Borrowing cash from a bank
• B)Issuing common stock for cash
• C)Purchasing land for cash
• D)Providing services for cash

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Definitions:

Behavioral Economics

A field of economics that examines how psychological, social, cognitive, and emotional factors influence the economic decisions of individuals and institutions, and how those decisions vary from those implied by classical theory.

Loss Aversion

In prospect theory, the property of most people’s preferences that the pain generated by losses feels substantially more intense than the pleasure generated by gains.

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Loss Aversion

A cognitive bias where individuals fear losses more than they value equivalent gains.