Which of the following transactions for Bill's Fish 'n Chips restaurant would be treated as an accounting transaction?
A)Bill distributed coupons to local hotels for 10% off and requested that the coupons be distributed to hotel guests.
B)Bill spoke to a local high school about the rewards and challenges of being an entrepreneur.
C)Bill signed an agreement with a local fisherman to purchase 20 pounds of halibut each month.
D)Bill purchased a fryer and a dishwasher,which will be paid for next month.

Question

Quizplus · Accepted Answer

A transaction is an event or activity that has a direct and measurable financial effect on the assets,liabilities,or stockholders' equity of a business.A liability (Bill's promise to pay)was exchanged for assets (fryer and dishwasher)and,so,the purchase is a transaction.No exchange took place with regards to the coupons,the speech,or the agreement with the fisherman.

Which of the Following Transactions for Bill's Fish 'N Chips