Any Valuable Asset That Is Donated to Your Business Without

question 3

Multiple Choice

Any valuable asset that is donated to your business without any obligation to repay or to give any ownership interest is called

• A)debt.
• B)equity capital.
• C)a gift.
• D)a tax credit.

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effect on accounts.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

Convertible Notes

A form of short-term debt that converts into equity, typically in conjunction with a future financing round, under specific terms.

Interest Expense

The cost incurred by an entity for borrowing funds, typically reported on the income statement.