Identify the Account Below That Impacts the Equity of a Business

question 181

Multiple Choice

Identify the account below that impacts the Equity of a business:

• A)Utilities Expense
• B)Accounts Payable
• C)Accounts Receivable
• D)Cash
• E)Unearned Revenue

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Definitions:

Operating Activities

Activities that relate directly to the business’s primary operations, such as selling goods and services, as opposed to investing or financing activities.

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.

Cash Equivalents

Assets readily convertible to a known cash amount within a short period, typically 90 days.

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, obtaining loans, or issuing and selling equity securities.