Which of the Following Events cannot Be Quantified into Dollars

question 159

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 CPA 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:

Financing Activities

Transactions related to raising and repaying capital, such as issuing stocks or bonds and paying dividends.

Net Cash

The amount of cash that is available after all debts and expenses have been paid.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and other investments not included in cash equivalents.

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.