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 salaries.
D) Paying salaries to company employees.

Question

Quizplus · Accepted Answer

Internal transactions are transactions that occur within a company and do not involve any external parties. Choice D involves paying salaries to company employees, which is a transaction involving an external party (employees), and therefore, it is not an example of an internal transaction. Choices A, B, and C do represent examples of internal transactions.

Examples of Internal Transactions Include All of the Following Except