A business activity that does not involve an exchange of economic considerationbetween two parties is called a(n):
A)Business transaction.
B)Business event.
C)Account receivable.
D)Equity transaction.
E)Withdrawal.

Question

Quizplus · Accepted Answer

A business event is a happening that affects the financial position of a business but does not involve an exchange of economic consideration between two parties. Examples include the depreciation of an asset or the revaluation of a liability. Business transactions, on the other hand, involve the exchange of economic consideration, such as the sale of goods or services or the acquisition of assets. Account receivable, equity transaction, and withdrawal all involve economic consideration as well.

A Business Activity That Does Not Involve an Exchange of Economic