Question 4 Which of the following is a business transaction

Question 4 Which of the following is a business transaction that would be measured for accounting purposes: 0 A customer exchanges $600 for a new Iphone at the Apple Store. o A customer calls and requests that the Apple Store hold an Iphone for them to purchase later that day 0 A customer walks into the Apple Store and tells the sales person they want a new Iphone soon. - A customer walks by the Apple Store on their way to Nordstroms D Question 5 Select the TWO accounts below that are impacted by following business transaction: The Apple Store purchases new Iphones on account to sell to customers at a later date. Cash a Inventory e Accounts Receivable Accounts Payable a Notes Payable Retained Earnings Question 6 Select the TWO accounts below that are impacted by following business transaction: Apple issues new stock to investors to raise money to open new stores in u Cash Inventory Accounts Receivable a Accounts Payable a Common Stock Notes Payable

Solution

A customer exchanges $600 for a new iPhone at the Apple store.

Since this transaction has a certain sum & is supported by a source document & it also affects the financial position of the company it will be categorized as a business transaction.

The two options are

Inventory: new iPhone purchased are part of inventory

Account payable: They are also liability (payables)

The two options are

Cash: as issuing new stock increases cash reserves.

Account receivable: since it’s a credit it is account receivable.