Every Transaction Has Two Sides-You Give Something and You Receive

question 71

True/False

Every transaction has two sides-you give something and you receive something.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity, such as issuing shares or taking loans.

Investing Activities

transactions involving the purchase and sale of long-term assets and other investments, not related to core business operations.

Net Worth

The difference between the total assets and total liabilities of an individual or company, indicating financial health.

Financing Activities

Transactions involving changes in equity and long-term liabilities, reflecting how a company raises capital and repays investors.