Which of the Following Business Events Would NOT Be Recorded

question 97

Multiple Choice

Which of the following business events would NOT be recorded in a company's accounting records?

• A)The company signed a contract to provide services in the next accounting period for $125,000.
• B)The company paid a monthly utility bill of $1,000.
• C)The company issued 100 shares of common stock for $75,000.
• D)The company purchased two acres of land for future plant expansion for $600,000.

---

Definitions:

Gross Profit

The financial gain obtained by subtracting the cost of goods sold from the revenue generated from sales, before deducting any operating expenses.

Production Jobs

Tasks or assignments related to the creation or assembly of goods within a manufacturing process.

Profit

The financial gain derived from a business activity after subtracting all expenses, taxes, and costs.

Manufacturing Overhead

Costs, other than direct materials and direct labor costs, that are incurred in the manufacturing process.