Candy Cane opened an ice cream store on June 1 and hired an accounting intern to help her establish the business.The intern has identified the following transactions.Which of these transactions is not an accounting transaction?
A)Purchased $3,400 of milk and cream from a local dairy
B)Signed a contract to deliver $1,200 of ice cream for a July 4th party
C)Paid June rent of $2,300
D)Borrowed money from the bank by signing a promissory note for $5,000

Question

Quizplus · Accepted Answer

External exchanges are exchanges involving assets,liabilities,and/or stockholders' equity between the company and someone else.An exchange of only promises is not an accounting transaction.Since no exchange has occurred when the contract is signed,this activity would not be recorded as a transaction.

Candy Cane Opened an Ice Cream Store on June 1