The company ABC Inc. began operations on January 1 of the current year. During the month of January they carried out various business activities. His two partners contributed $ 20,000, in cash, each, to start operations. They established a contractual agreement with a supplier that guaranteed a 30% discount, in exchange for annual purchases of $ 30,000 in inventory. They purchased office equipment valued at $ 5,000 and office supplies at a cost of $ 2,000. For these purchases, they used the funds deposited by the owners, which are kept in the National Bank. They established an accounting service contract with JW Consultants to take the accounting books of the business, for $ 300 per month. 

1. Question established for the forum. Does each of the business activities mentioned constitute transactions that must be recorded in the accounting books? Base your answer considering the definition and components of an accounting transaction.

Answer rating: 100% (QA)

An accounting transaction is a business event having a monetary impact on the financial statements o... View the full answer