Which of the following is an example of an accounting transaction?
A) A bank overdraft limit of $500 000 is arranged with the bank manager.
B) An accountant is hired at an annual salary of $80 000.
C) The company is awarded a contract to build a bridge,with construction to commence in 12 months' time.
D) The payroll department issues a cheque to pay an employee.

Question

Quizplus · Accepted Answer

The issuance of a cheque by the payroll department to pay an employee is an example of an accounting transaction, as it involves the movement of funds from the company's bank account to the employee's bank account. A bank overdraft limit, hiring an accountant, and being awarded a contract are not accounting transactions, as they do not involve the movement of funds or the recording of financial transactions.

Which of the Following Is an Example of an Accounting