Explain the difference between external events and internal events. Give an example of each type of event.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

100%

Chapter 2, Problem 2.1Q

Explain the difference between external events and internal events. Give an example of each type of event.

Expert Solution & Answer

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows:

1. a) Borrowing of cash from bank
1. b) Purchase of inventory
1. c) Sale to a customer

Examples of internal events are as follows:

1. a) Accrual of salary expense
1. b) Depreciation expense
1. c) Expiry of prepaid rent

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

general accounting

E3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method) [LO 3-2] Vista Vacuum Company has the following production Information for the month of March. All materials are added at the beginning of the manufacturing process. Units . • Beginning Inventory of 3,500 units that are 100 percent complete for materials and 28 percent complete for conversion. 14,600 units started during the period. Ending Inventory of 4,200 units that are 14 percent complete for conversion. Manufacturing Costs Beginning Inventory was $20,500 ($10,100 materials and $10,400 conversion costs). Costs added during the month were $28,400 for materials and $51,500 for conversion ($26.700 labor and $24,800 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the…

None

Answer 2

Textbook Question

100%

Chapter 2, Problem 2.1Q

Explain the difference between external events and internal events. Give an example of each type of event.

Expert Solution & Answer

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows:

1. a) Borrowing of cash from bank
1. b) Purchase of inventory
1. c) Sale to a customer

Examples of internal events are as follows:

1. a) Accrual of salary expense
1. b) Depreciation expense
1. c) Expiry of prepaid rent

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

100%

Chapter 2, Problem 2.1Q

Explain the difference between external events and internal events. Give an example of each type of event.

Expert Solution & Answer

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows:

1. a) Borrowing of cash from bank
1. b) Purchase of inventory
1. c) Sale to a customer

Examples of internal events are as follows:

1. a) Accrual of salary expense
1. b) Depreciation expense
1. c) Expiry of prepaid rent

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

100%

Chapter 2, Problem 2.1Q

Explain the difference between external events and internal events. Give an example of each type of event.

Expert Solution & Answer

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows:

1. a) Borrowing of cash from bank
1. b) Purchase of inventory
1. c) Sale to a customer

Examples of internal events are as follows:

1. a) Accrual of salary expense
1. b) Depreciation expense
1. c) Expiry of prepaid rent

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

100%

Answer 6

Textbook Question

100%

Answer 7

Expert Solution & Answer

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows:

1. a) Borrowing of cash from bank
1. b) Purchase of inventory
1. c) Sale to a customer

Examples of internal events are as follows:

1. a) Accrual of salary expense
1. b) Depreciation expense
1. c) Expiry of prepaid rent

Answer 8

Expert Solution & Answer

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows:

1. a) Borrowing of cash from bank
1. b) Purchase of inventory
1. c) Sale to a customer

Examples of internal events are as follows:

1. a) Accrual of salary expense
1. b) Depreciation expense
1. c) Expiry of prepaid rent

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

AccountingCycle:

Accounting cycle refers to the process of recording a business transaction in the books of accounts. This cycle concludes when the financial statements are prepared.

To Explain: The difference between external events, and internal events, and to give examples for them.

Answer 12

Explanation of Solution

External events are the events which involves an exchange transaction between the two parties, which is between a company, and another entity. Whereas, internal events are the events which does not involve any exchange transaction but such events affect the financial position of the company.
Examples of external events are as follows: