Examples of external transactions include all of the following except:
A)Paying employees salaries.
B)Purchasing equipment.
C)Depreciating equipment.
D)Collecting a receivable.

Question

Quizplus · Accepted Answer

External transactions involve exchanges between the company and an outside entity (such as a vendor or customer). Paying employees salaries, purchasing equipment, and collecting a receivable all involve transactions with external parties. Depreciating equipment, on the other hand, is an internal accounting transaction that does not involve an outside party.

Examples of External Transactions Include All of the Following Except