Which of the Following Business Events Would NOT Be Recorded

question 116

Multiple Choice

Which of the following business events would NOT be recorded in a company's accounting records?

• A) The company paid a monthly utility bill.
• B) The company issued 100 shares of common stock.
• C) The company purchased two acres of land for future plant expansion.
• D) The company signed a contract to provide services in the next accounting period.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the sales break-even point, indicating risk level.

Dollars

The basic monetary unit used in the United States, symbolized as $, representing the currency.

Contribution Format

A type of income statement presentation that separates fixed costs from variable costs, helping to understand the profitability of a company.

Income Statement

A financial statement that summarizes a company's revenues, expenses, and profits or losses over a specific period.