Which of the following events (transactions)is an internal event for a business entity?
A)An accountant provides services for clients.
B)An accountant purchases computer equipment to maintain business records and prepare legal documents.
C)An accountant receives cash payments from clients for services performed.
D)Periodically,the historical cost of the computer equipment used by an accountant is recorded as depreciation expenses.

Question

Quizplus · Accepted Answer

Depreciation is an internal event because it is a non-cash transaction that reflects the wear and tear on the business's assets. Options A, B, and C involve external transactions with clients or suppliers.

Which of the Following Events (Transactions)is an Internal Event for a Business