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Accounting questions: Define a transaction; going concern

Please select the correct answer, which one is correct?:

1. Which of the following is not a transaction to be recorded in the accounting records of an entity?

a. Sale of product to customers.
b. Investment of cash by the owners.
c. Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive.
d. Receipt of services from a "quick-print" shop in exchange for the promise to provide advertising design services of equivalent value

2. The going concern concept refers to a presumption that:

a. the entity will be profitable in the coming year.
b. the entity will continue to operate in the foreseeable future.
c. top management of the entity will not change in the coming year.
d. the entity will not be involved in a merger within a year.

Solution Preview


Pick C

A: the BEST kind of transaction, one with a customer! ;-)
B: a transaction with owner
C: an honor but not ...

Solution Summary

Response tell you which is correct and why and also why the other choices are not good (and WHY).