All of the following events at a sandwich shop are transactions except
- a. A customer purchases a sandwich.
- b. A delivery of coffee beans purchased on account from the local roaster is received.
- c. A representative from the local university contacts the manager of the shop to get a list of catering services.
- d. The accountant for the sandwich shop pays the electric bill.
To identify: Which of the given option is not considered as an event.
Answer to Problem 1QC
c. A representative from the local university contacts the manager of the shop to get a list of catering services.
Explanation of Solution
A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis. Transactions always has two sides, they are,
- Something is given, and
- Something is received in return
Option “a, b, and d” are not correct answer as per above explanation, only option “c” is correct answer as per above explanation. Hence, the correct answer is option c.
Therefore, the correct option is (c), a representative from the local university contacts the manager of the shop to get a list of catering services.
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Chapter 2 Solutions
Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Intermediate Accounting (2nd Edition)
Horngren's Accounting (12th Edition)
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