General Motors (GM)signs a new labor agreement that its workers will receive a 5% wage increase next year.This transaction affects GM's financial statements in the current year.

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A promise to pay has been exchanged for a promise to work next year.This activity is not a transaction because no assets or services were exchanged at the time the new labor agreement is signed.This event does not affect GM's financial statements in the current year.

General Motors (GM)signs a New Labor Agreement That Its Workers