Which of the Following Transactions Represents the Purchase of a Final

question 231

Multiple Choice

Which of the following transactions represents the purchase of a final good?

• A)Starbucks purchases coffee beans.
• B)Delta buys a new European-made jetliner.
• C)Apple computer buys computer processors from Intel.
• D)Your father buys a new John Deere riding lawn mower.

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Definitions:

Credits

Recognition or acknowledgment for something received or accomplished, often used in finance to denote money received or a decrease in liabilities.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Common-Size Financial Statement

A financial statement that includes a percentage breakdown of each item.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.