Which of the following statements about transaction analysis is correct?
A)Transactions are analyzed from the standpoint of the owners.
B)All business activities are considered to be accounting transactions.
C)The transaction amount is determined for each exchange based on the cost of the items given and received.
D)A business needs journal entries only to show how transactions affect the balance sheet.

Question

Quizplus · Accepted Answer

Each exchange is analyzed to determine a dollar amount that represents the value of items given and received.Transactions are analyzed from the standpoint of the business (rather than its owners).Business activities that do not include the exchange of assets or services at the time of the activity are not considered transactions.Journal entries indicate the effects of each day's transactions in a debits-equal-credits format on all of the accounts affected (not just the balance sheet accounts).

Which of the Following Statements About Transaction Analysis Is Correct