Answer
Transactions (a), (b), and (d), are considered business transactions and are recorded in the accounting records because a change in assets, liabilities or the stockholder’s/owners’ equity has been affected as a result of a transfer of values from one party to another.
Work Step by Step
On the other hand, transactions (C) and (E) are not considered as business transactions since a transfer of values has not resulted. In other words, the event cannot be considered as financial in nature since they are both not capable of been expressed in terms of money.
