BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bought furniture of RM10, 000 for business
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Paid for salaries of employees RM5, 000
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Paid son’s university fees from personal bank account RM20, 000
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Paid installment for business long term loan
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Detailed explanation-1: -Purchase of car for personal use is not relating to business and is not a business transaction.
Detailed explanation-2: -2. Non-business transactions. These are transactions that don’t involve a sale or purchase but may involve donations and social responsibility.
Detailed explanation-3: -A sale of merchandise or services. A purchase of supplies or raw material. Receipt of a payment for an Accounts Receivable.
Detailed explanation-4: -A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services. To engage in a business transaction, the business exchange must be measurable in monetary value so it can be recorded for accounting purposes.