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An example of an internal transaction is the...

A) performance of services.
B) use of office supplies.
C) purchase of an asset.
D) payment of a liability.

1 Answer

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Final answer:

An internal transaction is an event within a company, and using office supplies is an example as it's recorded internally without external exchange. Option b

Step-by-step explanation:

An internal transaction refers to the financial activities that occur within a business and do not involve an exchange with an external party. Among the options given, the use of office supplies qualifies as an internal transaction. This is because when office supplies are used, the event is recorded internally in the accounting books of the company; there is no external party interaction.

The performance of services and purchase of an asset usually involve external parties; likewise, the payment of a liability is settling an obligation externally. Option b

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