Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company transfers work in process to finished goods inventory.
A)Internal event
B)External event
C)Not recorded

Question

Quizplus · Accepted Answer

Transfer of work in process to finished goods inventory is an internal event as it involves the company's own inventory accounts. It affects the inventory valuation and costing system used internally by the company. Therefore, it needs to be recorded in the company's accounting system.

Identify Which of the Following Would Be Recorded as External