Which of the Following Is a Financial-Market Transaction

question 156

Multiple Choice

Which of the following is a financial-market transaction?

• A)A saver buys shares in a mutual fund.
• B)A saver deposits money into a credit union.
• C)A saver buys a bond a corporation has just issued so it can purchase capital.
• D)None of the above is correct.

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Definitions:

Reversing Entries

Accounting entries made at the beginning of a new period to negate the effects of adjustments made at the end of the previous period.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the end of the accounting period.

Wages Payable

Liabilities representing the amounts owed to employees for work performed but not yet paid.

Post-Closing Trial Balance

A list of all accounts remaining after closing entries have been made, showing the balances ready for the next accounting period.