BD One Company entered into the following transactions.Choose the one which represents an accounting error.
A)A shareholder of BD One Company purchases a new car,but this was not recorded by the company.
B)Revenue was recognized when a customer received services from BD One Company.
C)Cash received from a customer in payment of his account was debited to Cash and credited to Accounts Receivable.
D)BD One Company ordered inventory and the order was recorded by a debit to Inventory and a credit to Accounts Payable.

Question

Quizplus · Accepted Answer

Ordering inventory should not be recorded as a transaction until the inventory is received. The entry should be made when the inventory is received, not when it is ordered.

BD One Company Entered into the Following Transactions