Some of MAC's Transactions During the Month of January Are

question 2

Multiple Choice

Some of MAC's transactions during the month of January are as follows.Which transaction,if any,is recognised as an expense for the month of January?

• A) Paid $10 000 off a loan obtained during December.
• B) Paid a supplier $200 for goods purchased on credit in November.
• C) Purchased stationery to the value of $125 on credit, to be paid for in February.
• D) Purchased a motor vehicle for $25 000 cash.

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Definitions:

Issued

refers to securities, stocks, or bonds that have been officially released or sold by a company to investors.

Retained Earnings

Refers to the portion of net income left over for the business after it has paid out dividends to its shareholders.

Surplus Cash

Excess funds that a company has after covering all its operational expenses, investments, and financial obligations.

Dividends

Distributions to shareholders from a corporation, often sourced from the entity's earnings.