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alexandr402 [8]
3 years ago
6

Which of the following events is not recorded in the accounting records? Entry field with incorrect answer now contains modified

data Equipment is purchased on account. A cash investment is made into the business. The declaration of cash dividends. An employee is terminated.
Business
1 answer:
anygoal [31]3 years ago
5 0

Answer:

An employee is terminated.

Explanation:

All the transactions, in a company or organisation are recorded in financial statements of the company.

For this each transaction having some numerical value, that has a monetary effect on the organisation is identified.

In the given case,

  • purchase of equipment will involve direct monetary effect as cash will be paid, asset will be increased, etc:
  • cash investment made, will again require cash outflow, and is presented as monetary in nature.
  • Declaration of cash dividends gives existence to a liability called dividend payable, or scrips payable, and is thus, recorded in books.
  • The termination of employee does not itself involve any direct monetary effect. As, the payment made or realized from such termination will be recorded in financial statements.

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