Which of the following statements regarding the capital acquisition and repayment cycle is most correct?
A) A relatively few transactions affect the cycle, and most are smaller amounts.
B) A large number of transactions affect the cycle, and most are smaller amounts.
C) A relatively few transactions affect the cycle, and most are highly material.
D) A large number of transactions affect the cycle, and most are highly material.

Question

Quizplus · Accepted Answer

The capital acquisition and repayment cycle typically involves a relatively small number of transactions, but those transactions are usually of high materiality due to their significant impact on the financial position of a company. This includes activities such as issuing equity, obtaining loans, and repaying debt, all of which involve large sums of money.

Which of the Following Statements Regarding the Capital Acquisition and Repayment