Which of the Following Events Is NOT Recorded by Accountants

question 48

Multiple Choice

Which of the following events is NOT recorded by accountants?

• A) purchase of a building for $200,000 cash
• B) effects of an economic boom
• C) sale of merchandise on account
• D) signing a $400,000 note to purchase land

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Definitions:

Forward Contract

A bespoke pact between two parties for the buying or selling of an asset at a set price on an agreed future date.

Gross Method

A method of recording purchases at the gross invoice amount before any trade discounts are subtracted.

Hedging

A strategy used in financial management to offset potential losses or gains that may be incurred by a companion investment, thereby reducing the risk of adverse price movements.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines providing a common language for business affairs so that company accounts are understandable and comparable across international boundaries.