A Business Transaction Creating an Inflow of Net Assets Resulting

question 9

Multiple Choice

A business transaction creating an inflow of net assets resulting from the sale of goods or services is an) :

• A)Expense transaction
• B)Income transaction
• C)Cash disbursement
• D)Capital transaction

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Definitions:

Profit-Maximizing

a strategy or process where a firm determines the price, output level, and production scale that lead to the highest possible profit, under certain market conditions.

Profit

The profit achieved when the revenue from business operations surpasses the combined total of expenses, costs, and taxes needed to maintain those operations.

Loss

Loss refers to the negative financial result that occurs when expenses exceed revenues or costs outweigh benefits in a transaction or operation.

Service

An intangible economic activity that satisfies a need or wants, often performed by humans or automated systems.