Which of the Following Business Events Would NOT Be Recorded

question 85

Multiple Choice

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

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

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Definitions:

Imitation

The act of copying or mimicking the strategies, products, or processes of individuals or enterprises, often seen as a way to gain a competitive advantage or innovate.

Fast-Second Strategy

A business approach where companies wait to see which innovations prove viable and then quickly follow with improvements and cost reductions.

Collusion

A situation in which firms act together and in agreement (collude) to fix prices, divide a market, or otherwise restrict competition.

Process Innovation

The implementation of a new or significantly improved production or delivery method, enhancing efficiency or quality in operations.