John Contributed $6,000 to the Business by Opening a Bank

question 255

True/False

John contributed $6,000 to the business by opening a bank account in the name of the business, United Marketing. The corporation issued common stock to John. This transaction results in an increase in the assets of the business.

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Definitions:

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Cost of Goods Sold

Material and labor costs that are directly attributable to the manufacturing of a company’s products.

Sales

In the context of business, sales refer to the transactions and activities involved in selling goods or services to customers, often measured in terms of the total revenue generated.

Operating Cycle

The total time period from the acquisition of resources for production to the collection of payments from the sale of the goods or services produced.