Which of the Following Is an Internal Transaction

question 29

Multiple Choice

Which of the following is an internal transaction?

• A) payments of dividend to shareholders
• B) loan to a director
• C) amortisation of goodwill
• D) credit purchase of machinery.

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Definitions:

Balance Sheet Columns

Columns in a balance sheet that categorize and display assets, liabilities, and equity balances at a specific point in time.

Net Income

The net income a business earns following the deduction of all costs, taxes, and expenses from its total revenue.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used as the basis for preparing financial statements.

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, categorized for reporting and analysis purposes.