Which of the following is NOT an accounting transaction?
A) A payment is made to a telecommunications company.
B) The company is awarded a contract to build a bridge, with construction to commence in three months' time.
C) A creditor charges interest for late payment.
D) The payroll department pays an employee for holiday pay.

Question

Quizplus · Accepted Answer

The awarding of a contract is not an accounting transaction, as there is no exchange of money or goods/services at this point. The other options involve either paying or receiving money, which are typical accounting transactions.

Which of the Following Is NOT an Accounting Transaction