You Own a Building Supply Store

question 70

True/False

You own a building supply store.Today you sold construction materials to a contractor for $10,000 that you acquired a week ago for $8,000.You paid for the materials in cash,but you sold them to the contractor on credit,and you expect him to pay his bill in a few months.Based on this information during the week you earned a positive profit but experienced a negative cash flow.

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Definitions:

Shareholders

Individuals or entities that own one or more shares in a company, giving them partial ownership.

Stock

Equity or shares representing ownership interest in a company or corporation, giving shareholders a claim on part of the company's assets and earnings.

Quorum

The minimum number of members of a deliberative assembly necessary to conduct the business of that group.

Shareholders

Individuals or entities that own shares in a corporation, granting them certain rights in the company, like voting on corporate matters.