Shareholders Invest $100 000 in a Business

question 34

Multiple Choice

Shareholders invest $100 000 in a business.Inventory of $80 000 is bought on credit and damaged inventory that was purchased on credit for $10 000 was returned.Equipment costing $200 000 was purchased,which was financed by a loan from the seller,repayable in five years.The business paid $40 000 to accounts payable.Total assets increased by:

• A) $100 000.
• B) $170 000.
• C) $330 000.
• D) none of the answers provided.

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Definitions:

Credit Unions

Cooperative financial institutions owned and controlled by their members, providing savings accounts, loans, and other financial services to members.

Depository Financial Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Secondary Market

Collection of financial markets in which previously issued securities are traded among investors.

Debenture

Unsecured corporate bond.