Discussion questions

1. Indicate whether each of the following events is an internal transaction, an external transaction, or a non-transaction event. Explain your answer in each case:

(a) Receipt of money from a customer in payment of services to be provided early in

the next accounting period.

(b) Equipment is used to provide a service for a customer

(c) The human resources department provided services to the customer service

department.

(d) A building owned by the business increased in value

(e) Received payment from a customer on account for services provided in the

previous accounting period.

(f) A prospective employee is interviewed and hired for a job

(g) Stationery supplies are used by an employee.