The following transactions relate to the Melbourne Orchid Club, which of them is regarded as an internal transaction?
A) Sale of plants.
B) Payment of office wages.
C) Depreciation charged on the club's trailer.
D) Collection of membership subscriptions.

Question

Quizplus · Accepted Answer

Depreciation charged on the club's trailer is regarded as an internal transaction because it represents the allocation of the cost of an asset (trailer) over its useful life and does not involve any external party. The sale of plants (A) and the collection of membership subscriptions (D) are external transactions involving customers/members, while the payment of office wages (B) involves an external party (the employees).

The Following Transactions Relate to the Melbourne Orchid Club, Which