Which of the Following Transactions Affects the Liabilities for Gravette,Inc

question 165

Multiple Choice

Which of the following transactions affects the liabilities for Gravette,Inc.?

• A)Supplies are purchased for cash by Gravette.
• B)Gravette places an order for merchandise with a supplier;the merchandise will be shipped to Gravette in 60 days.
• C)The owners of Gravette invest $100,000 in the company.
• D)Payment is made on a bank loan which Gravette had obtained six months ago.

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Definitions:

Less Regulation

The concept of less regulation involves reducing government rules and oversight to potentially enhance business operations and market freedoms.

Airlines

Companies that provide air transport services for traveling passengers and freight.

Trucking

Refers to the transportation of goods and products by large vehicles over land.

Conglomerate Merger

A combination of two companies that are involved in totally unrelated business activities.