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On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This is
- a)An event
- b)A transaction.
- c)A transaction as well as an event.
- d)Neither a transaction nor an event
Correct answer is 'A'. Can you explain this answer?
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Most Upvoted Answer
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with...
Explanation:
To understand why the correct answer is option 'A' (an event), we need to first define what a transaction and an event are in accounting.
Transaction: In accounting, a transaction refers to a business activity that involves the exchange of goods, services, or money between two or more parties. For example, buying inventory on credit, selling goods for cash, or paying rent.
Event: An event, on the other hand, is a happening that affects a company's financial position but does not involve an exchange transaction. For example, a fire that destroys inventory, a change in government regulations, or a natural disaster.
In the given scenario, the sale of goods worth Rs. 2,000 is a transaction because it involves the exchange of goods for money. However, the closing inventory of Rs. 10,000 is an event because it is a change in the company's financial position, but it does not involve any exchange transaction.
Therefore, the correct answer is option 'A' (an event).
To understand why the correct answer is option 'A' (an event), we need to first define what a transaction and an event are in accounting.
Transaction: In accounting, a transaction refers to a business activity that involves the exchange of goods, services, or money between two or more parties. For example, buying inventory on credit, selling goods for cash, or paying rent.
Event: An event, on the other hand, is a happening that affects a company's financial position but does not involve an exchange transaction. For example, a fire that destroys inventory, a change in government regulations, or a natural disaster.
In the given scenario, the sale of goods worth Rs. 2,000 is a transaction because it involves the exchange of goods for money. However, the closing inventory of Rs. 10,000 is an event because it is a change in the company's financial position, but it does not involve any exchange transaction.
Therefore, the correct answer is option 'A' (an event).
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Community Answer
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with...
Because the transactions which takes place at the end or beginning of the year is considered as an event
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On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer?
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On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer?.
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This isa)An eventb)A transaction.c)A transaction as well as an event.d)Neither a transaction nor an eventCorrect answer is 'A'. Can you explain this answer?.
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