Question

During the past month, Pinnacle Corporation purchased a new delivery truck, sold an empty warehouse to another company, met with an existing client to discuss possible extension of a sales contract, and paid its mortgage and utility bills. Of these events, which would not be recorded in Pinnacle’s accounting records? A : paying the mortgage and utility bills B : selling the empty warehouse C : meeting with the existing client D : purchasing the delivery truck

Answer 1

Answer:

C. Meeting with the existing client.

Explanation:

Out of the 4 actions taken by Pinnacle Corporation in the past month, only the meeting with an existing client would not be recorded in the company's accounting records because this is the only interaction where there was not a direct transaction of money.  Options A, B, and D all include either a sale or purchase and, therefore, represent a transaction of specific amounts of money which should be recorded in the accounting records.