Every transaction involves a(n):
A)receiving and giving something of value.
B)increase in assets.
C)increase in stockholder's equity.
D)exchange of promises.

Question

Quizplus · Accepted Answer

The company always receives something and gives something.This is a basic feature of all business activities.A business enters into an exchange either to earn a profit immediately or to obtain resources that will allow it to earn a profit later.This is the fundamental idea of business: to create value through exchange.Any exchange that affects the company's assets,liabilities,or stockholders' equity must be captured in and reported by the accounting system.

Every Transaction Involves A(n)