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:

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure they are in agreement.

Bank Service Charges

Fees charged by banks for various account services.

Note Collected

An increase in cash or accounts receivable resulting from the collection of a promissory note.