Which of the Following Business Events May Not Be Recorded

question 52

Multiple Choice

Which of the following business events may not be recorded in a company's general ledger?

• A) The company paid each of its employees a Christmas bonus.
• B) A lawsuit has been filed by one of the company's customers (against the company).
• C) The company issued 100 shares of common stock.
• D) The company purchased two acres of land for future plant expansion.

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Definitions:

Hub Inspection Window

A feature in some wheel hubs allowing visual inspection of internal components without disassembly to ensure proper maintenance.

Differential Carrier Oil Change

The procedure of replacing the oil in the differential carrier to ensure proper lubrication and function of the vehicle's differential.

Drive Axles

A key component in a vehicle’s drivetrain, responsible for transferring power from the transmission to the wheels, enabling motion.

Wheel Ends

The components located at the ends of axles, including items such as the wheel, hub, and bearings, which are essential for wheel attachment and rotation.