In the Traditional Transactions Approach to Income Determination, Income Was

Multiple Choice

In the traditional transactions approach to income determination, income was measured by subtracting the expenses resulting from specific transactions during the period from revenues of the period also resulting from transactions. Under a strict transactions approach to income measurement, which of the following would not be considered a transaction?

A) Sale of goods on account at 20 percent markup
B) Exchange of inventory at a regular selling price for equipment
C) Adjustment of inventory in lower of cost or market inventory valuations when market is below cost.
D) Payment of salaries