Which of the Following Transactions Is Not a Direct Source

question 4

Multiple Choice

Which of the following transactions is not a direct source of cash?

• A) Disposal of inventory for cash.
• B) Borrowing cash.
• C) Sale and issuance of shares for cash.
• D) Sale of services on credit.

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Definitions:

Variable Inputs

Inputs or resources whose usage level can be changed in the short term to match the level of production output.

Property Resources

Physical and intangible entities that generate economic value owned by individuals or companies.

Labor

The human effort, including both physical and mental work, used in the production of goods and services.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or business activity.