There are 4 types of business events: operating events, financing events, investing events, and information events. Information
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Question:
There are types of business events: operating events, financing events, investing events, and information events. Information events are only an exchange of information and the capture of an information event would not result in a journal entry or a modification to the values in the four primary financial statements.
Identify the appropriate event type for each of the following events.
Question options:
A Paying salaries to employees.
B Receiving the materials that were ordered and recording a liability for it
C Creating a purchase order.
D Purchasing land.
E Taking a loan to purchase equipment.
F Purchasing new equipment for the business.
G Ordering raw materials from vendor.
H Paying the dividends to the shareholders.
Financing Event
Operating Event
Information Event
Investing Event
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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