Which of the Following Is Not an Accounting Event

question 54

Multiple Choice

Which of the following is not an accounting event?

• A)A customer places an order for goods.
• B)A firm issues stock for cash.
• C)A firm received,but did not pay,a bill for advertising.
• D)A firm purchased equipment on account.

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Definitions:

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.

Credit Balance

The amount of money in a financial repository that surpasses the debit balance and is available for use.

Consolidated Goodwill

The excess value of purchase price over the fair market value of identifiable assets and liabilities acquired during consolidation.

Common Stock

An equity security representing ownership in a corporation, entitling holders to a share of the corporation's residual assets and earnings.