Which of the Following Is Correct, Assuming the Following Transaction

question 73

Multiple Choice

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

• A) Cash is debited.
• B) Cash is credited.
• C) R. Dirk, Capital is debited.
• D) Income from Services is credited.

---

Definitions:

Raw Materials

The basic materials from which products are made, often extracted from natural resources and used in manufacturing processes.

Breaking Even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Net Present Value

A financial metric that calculates the present value of all future cash flows associated with a project, minus the initial investment cost.

Cost of Capital

The cost of funds used for financing a business, including the rate of return that investors demand for providing capital.