Which of the following business events would NOT be recorded in a company's accounting records?
A)The company paid a monthly utility bill of $1,000.
B)The company issued 100 shares of common stock for $75,000.
C)The company purchased two acres of land for future plant expansion for $600,000.
D)The company signed a contract to provide services in the next accounting period for $125,000.

Question

Quizplus · Accepted Answer

Signing a contract to provide services in the future does not involve a current financial transaction or change in the company's financial position, so it is not recorded in the accounting records until the services are actually provided or payment is received.

Which of the Following Business Events Would NOT Be Recorded