Which of the Following Events Cannot Be Quantified into Dollars

question 144

Multiple Choice

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

• A) The appointment of a new accounting firm to perform an audit.
• B) The purchase of a new computer.
• C) The sale of store equipment.
• D) Payment of income taxes.

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Definitions:

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during an accounting period.

Adjustment Columns

Refers to columns in a worksheet or financial statement used to record adjustments to certain accounts before preparing the final financial statements.

Long-Term Asset

Assets that are expected to provide economic benefits beyond one year, such as equipment, real estate, and intellectual property.