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Questions and Answers
Which of the following is NOT considered a common financial transaction?
Which of the following is NOT considered a common financial transaction?
- The discharge of financial obligations
- The transfer of inventory from one department to another (correct)
- The sale of goods
- The purchase of inventory
What are some examples of internal financial transactions mentioned in the text?
What are some examples of internal financial transactions mentioned in the text?
- The purchase of inventory
- The receipt of cash on account from customers
- The depreciation of fixed assets (correct)
- The sale of goods or services
Why do business firms group similar types of transactions into transaction cycles?
Why do business firms group similar types of transactions into transaction cycles?
- To reduce the number of financial transactions
- To prioritize certain types of transactions
- To avoid dealing with high volumes of transactions
- To increase the efficiency of financial transactions (correct)
How often do common business events, such as sales to customers, occur?
How often do common business events, such as sales to customers, occur?
What are some examples of economic exchanges with external parties mentioned in the text?
What are some examples of economic exchanges with external parties mentioned in the text?
Which of the following best describes the flow of cash in the expenditure cycle?
Which of the following best describes the flow of cash in the expenditure cycle?
What is the primary basis for most expenditure transactions?
What is the primary basis for most expenditure transactions?
How much time may pass between the receipt of goods or services and the disbursement of cash in the expenditure cycle?
How much time may pass between the receipt of goods or services and the disbursement of cash in the expenditure cycle?
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