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:

Illegal

Activities or actions that are prohibited by law and subject to penalties.

Requirement

A requirement refers to a condition or specification that must be met or complied with.

Effective

Having the intended or expected result or coming into force.

Writing

Writing refers to the recording of characters on a medium, enabling communication or documentation across time and space.