When a New Business Is Just Starting Up,which of the Following

question 82

Multiple Choice

When a new business is just starting up,which of the following must be done first?

• A)Generate positive cash flow through successful operations.
• B)Acquire the assets both long-lived and short-lived so they can operate.
• C)Acquire financing from issuance of shares and borrowing from creditors.
• D)These activities all occur simultaneously not sequentially.

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Definitions:

Customer Transaction

An operation between a business and its customer involving the sale or purchase of goods or services.

Invoices

Documents issued by a seller to a buyer that outline the products or services provided, quantities, prices, and terms of payment.

Credit Memos

Documents issued to a customer, indicating a reduction in the amount that the customer owes to the company.

Refund Receipts

Documents that confirm the return of funds to a customer for returned goods or overpayment.