Examples of external transactions include all of the following except:
A) Paying employee salaries.
B) Purchasing equipment.
C) Depreciating equipment.
D) Collecting a receivable.

Question

Quizplus · Accepted Answer

External transactions involve interactions with entities outside of the organization. Paying employee salaries, purchasing equipment, and collecting a receivable are all examples of external transactions because they involve interactions with employees, vendors, or customers. Depreciating equipment is not an external transaction because it is an internal accounting process that does not involve any interaction with external entities.

Examples of External Transactions Include All of the Following Except