Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-A vendor for a company's supplies is paid an amount owed on account.
A)Internal event
B)External event
C)Not recorded

Question

Quizplus · Accepted Answer

This transaction involves an external party (the vendor) and the payment of an amount owed, which would be recorded as a decrease in the company's accounts payable. Therefore, it is an external event that would be recorded in the company's accounting records.

Identify Which of the Following Would Be Recorded as External