All of the Following Are External Events (Transactions) except for

question 121

Multiple Choice

All of the following are external events (transactions) except for

• A) a department store recognizing losses from shoplifting.
• B) a department store running ads in a local newspaper.
• C) a department store purchasing merchandise from a clothing manufacturer.
• D) a department store selling clothing to customers on credit.

---

Definitions:

Balance Sheet Credit Column

The section of the balance sheet where liabilities and equity accounts are listed, typically reflecting sources of the company’s funds.

Worksheet

A document or tool used for planning, organizing information, solving problems, and making calculations.

Income Summary

An account used in closing entries to collect the revenue and expenses for a specific accounting period before transferring the net result to capital.

Expenses

Costs incurred in the process of earning revenues, typically categorized as operating or non-operating.