How Many of the Following Transactions Are Operating Activities

question 46

Multiple Choice

How many of the following transactions are operating activities?
Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock

• A)One.
• B)Two.
• C)Three.

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Definitions:

Systematic Risk

The risk inherent to the entire market or an entire market segment, which cannot be eliminated through diversification.

Expected Return

The expected return is the anticipated profit or loss from an investment over a given period.

True Risk

The actual level of risk associated with an investment or decision, considering all factors including unknowable future events.

Systematic Risk Principle

Principle stating that the expected return on a risky asset depends only on that asset’s systematic risk.