The transactions below are from the records of Templestowe Picture Framers, the internal transaction is:
A) cash sale.
B) paid monthly rent on premises.
C) credit sale.
D) recorded depreciation on shop fixtures and fittings.

Question

Quizplus · Accepted Answer

Internal transactions are those that do not involve an exchange with an external party but rather affect the internal financial state of the business. Recording depreciation on shop fixtures and fittings is an example of an internal transaction because it reflects the allocation of the cost of these assets over their useful lives without involving an external exchange.

The Transactions Below Are from the Records of Templestowe Picture