The first step in the accounting cycle involves analyzing transactions, based on this analysis, which of the following would not be recorded?
A)sales receipt
B)rental contract
C)cheque
D)invoice

Question

Quizplus · Accepted Answer

A rental contract is not recorded in the accounting records as a transaction itself; it represents an agreement to rent property or equipment but does not directly affect the financial statements until payments are made or received under the terms of the contract.

The First Step in the Accounting Cycle Involves Analyzing Transactions