CA Foundation Exam > CA Foundation Questions > On March 31, 2015 after sale of goods worth R...
Start Learning for Free
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. 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 option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with...
Event vs Transaction in Accounting
Introduction
In accounting, events and transactions are two important concepts that help in determining the financial position of a business. While both of them are related to the exchange of goods and services, there are some key differences between them. In this answer, we will discuss the difference between an event and a transaction in accounting.
Event
An event refers to any happening that affects the financial position of a business but does not involve any exchange of goods or services. For example, a fire in the factory, a change in government regulations, or a natural disaster are all events that can impact a business's financial position. In the context of the question, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 but does not involve any exchange of goods or services.
Transaction
A transaction, on the other hand, is an exchange of goods or services between two parties that results in a change in the financial position of a business. For example, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in an increase in the business's cash balance. In the context of the question, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money.
Conclusion
In conclusion, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 and does not involve any exchange of goods or services. On the other hand, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in a change in the financial position of the business.
Introduction
In accounting, events and transactions are two important concepts that help in determining the financial position of a business. While both of them are related to the exchange of goods and services, there are some key differences between them. In this answer, we will discuss the difference between an event and a transaction in accounting.
Event
An event refers to any happening that affects the financial position of a business but does not involve any exchange of goods or services. For example, a fire in the factory, a change in government regulations, or a natural disaster are all events that can impact a business's financial position. In the context of the question, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 but does not involve any exchange of goods or services.
Transaction
A transaction, on the other hand, is an exchange of goods or services between two parties that results in a change in the financial position of a business. For example, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in an increase in the business's cash balance. In the context of the question, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money.
Conclusion
In conclusion, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 and does not involve any exchange of goods or services. On the other hand, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in a change in the financial position of the business.
Free Test
FREE
| Start Free Test |
Community Answer
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with...
Transaction denotes with a business performance of an act, an agreement, while event is used to mean a happening, as a consequence of a transaction, a result. Events are the end results of transactions. Therefore, Stock left at close of year ,after all transaction s is an event.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?
Question Description
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option '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, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option '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, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?.
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option '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, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option '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, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?.
Solutions for On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. 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 On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup