Asked by Future- Success on Jun 18, 2024
Verified
The first step in the accounting cycle involves analyzing transactions, based on this analysis, which of the following would not be recorded?
A) sales receipt
B) rental contract
C) cheque
D) invoice
Sales Receipt
A document that provides proof of a sales transaction, detailing the goods or services purchased and the amount paid.
Rental Contract
A legal agreement between a landlord and tenant detailing the terms and conditions for renting property or equipment.
Invoice
A document issued by a seller to a buyer that lists items or services provided, their prices, and the total amount payable, often serving as a request for payment.
- Gain a clear understanding of the essential principles behind journal entries and how they alter account balances.
Verified Answer
LA
Layken AlberJun 19, 2024
Final Answer :
B
Explanation :
A rental contract is not recorded in the accounting records as a transaction itself; it represents an agreement to rent property or equipment but does not directly affect the financial statements until payments are made or received under the terms of the contract.
Learning Objectives
- Gain a clear understanding of the essential principles behind journal entries and how they alter account balances.