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Which of the following business events may not be recorded in a company's general ledger?

a) The company paid each of its employees a Christmas bonus.
b) The company issued 100 shares of common stock.
c) A lawsuit has been filed by one of the company's customers (against the company).
d) The company purchased two acres of land for future plant expansion.

User BoP
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Final answer:

The event not recorded in the general ledger is the filing of a lawsuit, as it's a contingent event without a definitive financial impact at the initial stage. In contrast, paying bonuses, issuing stock, and purchasing land are definitive transactions that affect the company's financial statements.

Step-by-step explanation:

The business event that may not be recorded in a company's general ledger is c) A lawsuit has been filed by one of the company's customers (against the company). This is because, at the initial stage, a lawsuit is a contingent event and does not represent a definitive financial transaction or obligation. The outcomes or implications of the lawsuit, such as settlements or judgments, may later have financial impacts that would then be recorded in the ledger.

On the other hand, paying Christmas bonuses to employees, issuing common stock, and purchasing land for expansion are definitive transactions that will be recorded in the general ledger. Paying bonuses and purchasing land result in immediate cash outflows, while issuing stock typically results in cash inflows and changes in equity.

User Blanco
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