Which of the following is an accounting transaction?
A) Send a purchase order for inventory to a supplier.
B) Pay a deposit on a service to be received in the next accounting period.
C) Hire a new staff member.
D) Sign a new contract.

Question

Quizplus · Accepted Answer

Paying a deposit on a service to be received in a future accounting period is an accounting transaction as it involves the exchange of money and the recognition of a liability on the balance sheet. The other options are not accounting transactions as they do not involve the exchange of money or recognition of a financial entry in the accounts.

Which of the Following Is an Accounting Transaction