Your company's president donates a large amount of her own money to charity and receives significant publicity that includes the company's name.How would the benefits of this publicity appear on the balance sheet?

Question

Quizplus · Accepted Answer

This activity is not a transaction because no assets or services were exchanged by the business.No asset would be recorded.In addition,recall that an asset is an economic resource presently controlled by the company;it has measurable value and is expected to benefit the company by producing cash inflows or reducing cash outflows in the future.This situation does not meet the definition of an asset.

Your Company's President Donates a Large Amount of Her Own