CA Foundation Exam > CA Foundation Questions > Which of the following is an event?a)Sale of ...
Start Learning for Free
Which of the following is an event?
- a)Sale of goods for Rs.5,000
- b)Closing stock of worth Rs.4,000
- c)Purchase of goods for Rs.8,000
- d)Rent paid Rs.2,000
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closi...
The correct option is B.
In accounting terms, an event is simply an economic activity which can be cash or noncash which happens in day to day operation of a business which does not involves changes in account balances.
Difference between transaction and event is when an event brings change to account balances, it is classified as a transaction.
Therefore since in case of closing stock accounting, we are only presenting it in the books of final accounts, it is an event and not a transaction.
Most Upvoted Answer
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closi...
Event in Accounting
An event in accounting is any transaction or happening that affects the financial position of a business. It can be a purchase or sale of goods, payment of rent, receipt of interest, etc. Let's see which of the given options is an event.
a) Sale of goods for Rs.5,000 - This is an example of a transaction, but not an event. It only shows the exchange of goods for money and does not affect the financial position of the business.
b) Closing stock of worth Rs.4,000 - This is an event. The closing stock at the end of the accounting period affects the value of the inventory and, thereby, the financial position of the business.
c) Purchase of goods for Rs.8,000 - This is an example of a transaction, but not an event. It only shows the exchange of money for goods and does not affect the financial position of the business.
d) Rent paid Rs.2,000 - This is an example of a transaction, but not an event. It only shows the exchange of money for a service and does not affect the financial position of the business.
e) - There is no option e given in the question.
Conclusion
Hence, the correct answer is option B, i.e., Closing stock of worth Rs.4,000, which is an event as it affects the financial position of the business.
An event in accounting is any transaction or happening that affects the financial position of a business. It can be a purchase or sale of goods, payment of rent, receipt of interest, etc. Let's see which of the given options is an event.
a) Sale of goods for Rs.5,000 - This is an example of a transaction, but not an event. It only shows the exchange of goods for money and does not affect the financial position of the business.
b) Closing stock of worth Rs.4,000 - This is an event. The closing stock at the end of the accounting period affects the value of the inventory and, thereby, the financial position of the business.
c) Purchase of goods for Rs.8,000 - This is an example of a transaction, but not an event. It only shows the exchange of money for goods and does not affect the financial position of the business.
d) Rent paid Rs.2,000 - This is an example of a transaction, but not an event. It only shows the exchange of money for a service and does not affect the financial position of the business.
e) - There is no option e given in the question.
Conclusion
Hence, the correct answer is option B, i.e., Closing stock of worth Rs.4,000, which is an event as it affects the financial position of the business.
Free Test
FREE
| Start Free Test |
Community Answer
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closi...
Event means Outcome of a transaction. A,C,D are transactions and B is an outcome of transaction like sale and purchase, that's why it is closing stock.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer?
Question Description
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer?.
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following is an event?a)Sale of goods for Rs.5,000b)Closing stock of worth Rs.4,000c)Purchase of goods for Rs.8,000d)Rent paid Rs.2,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup