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Please answer all the questions 7. A transaction caused a $55,000 increase in both assets and total liabilities. This transaction could have been: A) Purchase
Please answer all the questions
7. A transaction caused a $55,000 increase in both assets and total liabilities. This transaction could have been: A) Purchase for office equipment for $55,000 cash. B) Purchase of office equipment for $120,000, paying $65,000 cash and issuing a note payable for the balance. C) Repayment of a $55,000 bank loan. D) Investment of $55,000 cash in the business by the owner. 8. The balance sheet item that represents the portion of owners' equity resulting from profitable operation of the business is: A) Accounts receivable. B) Cash. C) Capital stock. D) Retained earnings. 9. Which of the following activities is not a category into which cash flows are classified? A) Marketing activities. B) Operating activities. C) Financing activities. D) Investing activities Step by Step Solution
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