Which of the Following Is NOT an Example of an Accounting

question 37

Multiple Choice

Which of the following is NOT an example of an accounting transaction?

• A) A salesman disappears with a company vehicle and merchandise.
• B) The bank charges interest on a loan.
• C) A customer settles an account by undertaking delivery work for the business.
• D) A purchase order for inventory from a supplier is sent.

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Definitions:

Recognized Gain

The amount of profit realized from the sale or exchange of an asset that must be reported for tax purposes.

Cash Distribution

The payment of cash to shareholders or partners as part of the profits or surplus.

Self-employment Income

Income derived from running a business as a sole proprietor, independent contractor, or freelancer, as opposed to earning a salary or wages from an employer.

Section 179 Expense

A section of the IRS tax code allowing businesses to deduct the full purchase price of qualifying equipment and/or software within a tax year.