The American Red Cross Created a Series of Advertisements to Encourage

question 150

Multiple Choice

The American Red Cross created a series of advertisements to encourage people to donate blood.After viewing an ad,Amanda went to the local Red Cross office and donated a pint of her blood.Amanda returned home feeling happy that she had performed a good deed.Did an exchange occur in a marketing sense?

• A)Yes,because the blood was donated to the Red Cross based on an advertisement,a marketing activity.
• B)Yes,because the donated blood was exchanged for a feeling of satisfaction.
• C)No,because the Red Cross is nonprofit organization.
• D)No,because no money changed hands.
• E)No,because the Red Cross,a service organization,did not provide Amanda with a product.

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Definitions:

Owner's Capital Account

Represents the total equity or net worth of an individual owner in a company, detailing the contributions, earnings, and withdrawals of the owner.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net income or loss for the period.

Recording Process

The systematic method of capturing and documenting financial transactions in the accounting records of an entity.

Transactions

The actions or activities conducted by individuals or entities involving the exchange of goods, services, or financial assets.