Which of the Following Is Not a Business Transaction

question 7

Multiple Choice

Which of the following is not a business transaction?

• A) Incurring interest on a business loan.
• B) A business owner purchasing a new home.
• C) Purchasing inventory.
• D) Receiving cash payment for services provided.

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Definitions:

Fixed Manufacturing Expenses

Fixed expenses that are not affected by changes in production or sales quantities, like rent, salaries, and insurance.

Fixed Selling Expenses

Costs associated with the selling process that do not vary with sales volume, such as salaries of sales staff and advertising fees.

Net Operating Income

Net Operating Income, or NOI, is a measure of a company's profitability from its regular, core business operations, excluding expenses like interest and taxes.

Accounting System

A structured process of collecting, recording, summarizing, and reporting financial transactions of a business or individual.