How Many of the Following Transactions Are Operating Activities? Borrowed

question 55

Multiple Choice

How many of the following transactions are operating activities? Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock

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

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Definitions:

Production Period

The phase in which a company is engaged in the creation or manufacturing of goods.

Applied Factory Overhead

The allocation of estimated manufacturing overhead cost to individual units of production.

Direct Labor

The labor costs associated with workers who physically construct a product or are directly involved in providing a service.

Continuous Process

A manufacturing process where production runs 24/7, often used in industries like chemicals and oil refining.