Which of the following is NOT an example of a transaction?

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Multiple Choice

Which of the following is NOT an example of a transaction?

Explanation:
Transactions are economic events that change a company’s financial position and must be recorded in the accounting system. Buying stock changes assets by swapping cash for an investment, and that shift is recorded. Paying wages reduces cash and increases wage expense, another clear financial change to records. Receiving money from customers increases cash and revenue, affecting the income statement and balance sheet. Reading a newspaper, on the other hand, does not involve an exchange of value that affects assets, liabilities, or equity, so there’s no financial entry to record. Therefore, reading a newspaper is not a transaction.

Transactions are economic events that change a company’s financial position and must be recorded in the accounting system. Buying stock changes assets by swapping cash for an investment, and that shift is recorded. Paying wages reduces cash and increases wage expense, another clear financial change to records. Receiving money from customers increases cash and revenue, affecting the income statement and balance sheet. Reading a newspaper, on the other hand, does not involve an exchange of value that affects assets, liabilities, or equity, so there’s no financial entry to record. Therefore, reading a newspaper is not a transaction.

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