Examples of internal transactions include all of the following except:
A)Writing off an uncollectible account.
B)Recording the expiration of prepaid insurance.
C)Recording unpaid wages.
D)Paying wages to company employees.

Question

Quizplus · Accepted Answer

Paying wages to company employees is an example of an external transaction because it involves transferring resources to entities outside of the organization (employees). A, B, and C are all examples of internal transactions because they involve recording changes in assets, liabilities, or equity within the organization's own accounts.

Examples of Internal Transactions Include All of the Following Except