Which of the Following Transactions Relating to the West Cricket

question 44

Multiple Choice

Which of the following transactions relating to the West Cricket Club is regarded as an internal transaction?

• A) Sale of food and drinks from the canteen.
• B) Depreciation charged on the club's mower.
• C) Collection of players' fees.
• D) Payment of wages for admin staff.

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Definitions:

Unearned Income

Income received by an individual or a company for which the services have not yet been performed or goods have not yet been delivered. It is considered a liability until the services or goods are provided.

Direct Financing Lease

A lease agreement where the lessor purchases the leased asset specifically for the lease and all financial risks and rewards are transferred to the lessee.

Periodic Rate of Return

The rate at which an investment grows during each accounting period, often utilized to compare the profitability or yield of different investments over a set time frame.

Net Investment

The total amount spent on purchasing fixed assets less any disposals, also considering adjustments for depreciation or impairments.