Question

Which of the following are external events?

a)Paying employee salaries.
b)Using supplies purchased in the previous month.
c)Collecting on a customer account.
d)Borrowing from the bank.

Answer 1

Paying employee salaries, collecting on a customer account, and borrowing from the bank are external events.

Step-by-step explanation:

The external events among the options provided are:

• a) Paying employee salaries: This is an external event as it involves the payment of salaries to employees, which is typically done externally to the organization.
• c) Collecting on a customer account: This is also an external event as it involves the collection of money from a customer, which is an external party.
• d) Borrowing from the bank: Borrowing from the bank is an external event as it involves obtaining funds from an external financial institution.

On the other hand, b) Using supplies purchased in the previous month is not considered an external event as it relates to internal inventory management rather than external transactions.