Analyze the Following Transactions

question 127

Essay

Analyze the following transactions.Indicate which accounts are affected and whether they will increase or decrease.Transaction (a)is completed as an example.
a.Owner investment of cash into the business.
b.Payment of a utility bill.
c.Purchase of inventory for cash.
d.Payment of an accounts payable.
e.Performing a service on account.
f.Collecting cash from a customer as payment on his account.

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Definitions:

Net Present Value

A technique utilized in the process of capital budgeting to assess an investment's profitability by determining the difference between the present value of cash inflows and outflows.

Treasury Bills

Short-term government securities with maturation periods of one year or less, considered a safe and liquid investment option.

Opportunity Costs

The cost of missing out on the next best alternative when making a decision.

Cash Balance

The amount of cash a company has available at any given time, including bank balances and cash on hand.