Asked Jan 8, 2020

Do the following events represent business transactions?
Explain your answer in each case.
(a) A computer is purchased on account.
(b) A customer returns merchandise and is given credit
on account.
(c) A prospective employee is interviewed.
(d) The owner of the business withdraws cash from the
business for personal use.
(e) Merchandise is ordered for delivery next month


Expert Answer

Step 1

Business transaction: It is an activity that is measured through the medium of money, which affects the financial situation of the entity. The business t...

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Financial Accounting