Identifying business activities requires selecting transactions and events relevant to an organization.Which of the following events would be recorded in the accounting records of Acme Car Wash?
A)Acme washes 500 cars.
B)J.B.Smith,a customer,buys lunch at the restaurant next door to Acme while waiting for her car to be washed.
C)Clean Company,a supplier,sells 50 pounds of soap to ABC Company.
D)Sudsey Company,a supplier,goes out of business.
E)Acme hires Andrea as a receptionist.

Question

Quizplus · Accepted Answer

The event of Acme washing 500 cars is directly related to the business activity of providing car washing services and would be recorded in the accounting records. The other events are not relevant business activities of Acme Car Wash.

Identifying Business Activities Requires Selecting Transactions and Events Relevant to an Organization.Which