Question

Which of the following is not a transaction to be recorded in the accounting records of an entity? A. Investment of cash by the owners. B. Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive. C. Value of inventory held by the company D. Sale of product to customers.

Answer 1

Answer:

(B). Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive.

Explanation:

The accounting records of an entity or an organization contains information relating to financial transactions carried out by the organization.

Such information includes; sales of goods, cash investment and inventory value.

The Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive, will NOT be recorded in an entity's accounting records.