Which of these business events does not result in an accounting transaction?Select answer from the options belowOrder supplies from vendorDeliver product to customerDeclare a dividendPay a dividend
Question
Which of these business events does not result in an accounting transaction?Select answer from the options belowOrder supplies from vendorDeliver product to customerDeclare a dividendPay a dividend
Solution
The business event that does not result in an accounting transaction is "Deliver product to customer". This is because delivering a product does not change the financial position of the company. It does not involve an exchange of money or a change in the company's assets, liabilities, or equity, which are the elements that would be recorded in an accounting transaction. On the other hand, ordering supplies from a vendor, declaring a dividend, and paying a dividend all involve changes to the company's financial position and would therefore result in accounting transactions.
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