The Following Transactions Relate to the Melbourne Orchid Club, Which

question 31

Multiple Choice

The following transactions relate to the Melbourne Orchid Club, which of them is regarded as an internal transaction?

• A) Sale of plants.
• B) Payment of office wages.
• C) Depreciation charged on the club's trailer.
• D) Collection of membership subscriptions.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but instead reinvested back into the company.

Tangible Capital

Physical assets owned by a firm that are used in the production process, such as buildings, machinery, and equipment.

Opportunity Costs

The cost associated with not choosing the next best alternative in a decision-making process.

Operating System

The software that manages the hardware and software resources of a computer system and provides common services for computer programs.