An Exchange Between Two Parties of Economic Consideration Such as Goods

question 184

Multiple Choice

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called:

• A)An audit.
• B)The accounting equation.
• C)Bookkeeping.
• D)A business transaction.
• E)A gift.

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Definitions:

Notes Payable

Financial obligations represented by written promissory notes that specify the terms under which a borrower agrees to repay a lender.

Owner's Capital

Represents the total equity of the owner in a business, which consists of the initial and additional investments minus any withdrawals.

18-Month Insurance

This term refers to a prepaid insurance policy that covers a period of 18 months, recognized as an asset initially and expensed over the duration of the coverage.

Weekly Payroll

The total sum of all employee earnings paid on a weekly basis.