Question Details

Which of the following is a business event that is considered a recordable transaction





	1.	When a business records revenue before it has been earned, it has violated the measurement issue of
a.	recognition.
b.	evaluation.
c.	classification.
d.	valuation.



	2.	When a business reports an asset at an inflated dollar amount, it has violated the measurement issue of
a.	recognition.
b.	valuation.
c.	classification.
d.	realization.



	3.	When a business erroneously records expenses as assets, it has violated the measurement issue of
a.	communication.
b.	classification.
c.	valuation.
d.	recognition.



	4.	Which of the following is a business event that is not considered a recordable transaction?
a.	A company receives a product previously ordered.
b.	A company pays an employee for work performed.
c.	A customer inquires about the availability of a service.
d.	A customer purchases a service.



	5.	Which of the following is a business event that is considered a recordable transaction?
a.	A company hires a new employee.
b.	A customer purchases merchandise.
c.	A company orders a product from a supplier.
d.	An employee sends a purchase requisition to the purchasing department.