A Business Transaction Has Occurred When

question 50

Multiple Choice

A business transaction has occurred when:

• A)an event affects the entity's financial position.
• B)the event can be reliably measured.
• C)the accountant determines that the event is important enough to be a business transaction.
• D)both A and B occur.

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Definitions:

Receiving Calls

The act or process of accepting incoming telephone calls, often in a business context for customer service.

Time-Driven

A method or model that assigns resource costs based on the actual time units consumed by an activity or process.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their use of resources.

Preparing Deliveries

The process involved in getting goods ready to be dispatched to the customer, including packing and labeling.