Which of the following is an internal transaction?
A) Payment of dividends to shareholders
B) Loan to a director
C) Depreciation of equipment
D) Purchase of machinery on credit

Question

Quizplus · Accepted Answer

Depreciation of equipment is an internal transaction because it involves the recording of the decrease in value of the company's own assets over time. It does not involve any external parties or transactions.

Note: A, B, and D are all examples of external transactions because they involve transactions with external parties such as shareholders, directors, or credit suppliers.

Which of the Following Is an Internal Transaction