Following Are Transactions of Gotebo Tanners,Inc

question 44

Multiple Choice

Following are transactions of Gotebo Tanners,Inc.,a new company,during the month of January 2012:
1.Issued 10,000 shares of common stock for $15,000 cash.
2) Purchased land for $12,000,signing a note payable for the full amount.
3) Purchased office equipment for $1,200 cash.
4) Received cash of $14,000 for services provided to customers during the month.
5) Purchased $300 of office supplies on account.
6) Paid employees $10,000 for their first month's salaries.
How many of these transactions increased Gotebo's liabilities?

• A)Four.
• B)Three.
• C)Two.
• D)One.

---

Definitions:

Production Function

An equation or model that describes the relationship between inputs (like labor and capital) and outputs (goods or services) in the production process.

Capital

Assets or wealth, whether in the form of money or other resources, that are used or invested to generate income.

Determinant Of Output

Factors that influence the quantity of goods and services an economy can produce, such as labor, capital, technology, and government policies.

Market Prices

The current value at which goods or services are bought and sold in a competitive marketplace.