Which of the Following Business Events May Not Be Recorded

question 87

Multiple Choice

Which of the following business events may not be recorded in a company's general ledger?

• A) The company paid each of its employees a Christmas bonus.
• B) The company issued 100 shares of common stock.
• C) The company purchased two acres of land for future plant expansion.
• D) A lawsuit has been filed by one of the company's customers (against the company).

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Definitions:

Downsloping Demand Curves

A graph that illustrates the inverse relationship between the price of a good and the quantity demanded by consumers; as price decreases, the quantity demanded increases.

Inelastic Segment

Part of a demand curve where the quantity demanded changes very little with a change in price, indicating consumers' relative insensitivity to price changes.

Maximum Profits

The highest possible financial gain that a company can achieve in a given period while accounting for all costs and expenses.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for a good or service, regardless of the demand or cost conditions.