Several events are listed below.Indicate whether each event is an external event that should be recorded as a transaction, an internal event which should be recorded as a transaction, or an event which should not be recorded.Use the following identification codes for your answers:
E - External event to be recorded as a transaction
I - Internal event to be recorded as a transaction
NR - An event which should NOT be recorded ___ A) An order is placed with a supplier for merchandise.
___ B) Common stock is issued to investors.
___ C) Cash sales are made.
___ D) Raw materials are entered into production.
___ E) Federal income tax returns are prepared by the comp any's accountant.
___ F) Bills are received for utility expenses.
___ G) Payment is received from customers to whom merchandise had been sold on credit.
___ H) Money collected from cash and credit customers is deposited in the company's checking account at a local bank.
Correct Answer:
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