Which of the following transactions would not be considered an external exchange? A)The purchase of supplies on credit. B)Cash received from the issuance of common stock. C)Cash paid to a bank for interest on a loan. D)Using up insurance,which had been paid for in advance.

Question

Quizplus · Accepted Answer

Using up insurance that had been paid for in advance represents an internal transaction because it does not involve an exchange with an external entity. The other options involve exchanges with external entities such as suppliers, investors, and lenders.

Which of the Following Transactions Would not Be Considered