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)Periodically, part of the cost of the computer equipment used by an accountant is assigned to depreciation expenses.
D)An accountant receives cash payments from clients who were billed for services.

Question

Quizplus · Accepted Answer

Depreciation expense is an internal event because it involves allocating the cost of a business asset (in this case, computer equipment) over its useful life. The other options all involve external parties (clients) or external transactions (purchasing equipment, receiving cash payments) and are therefore not internal events.

Which of the Following Events Transactions) Is an Internal Event