Question

Which of the following business events may not be recorded in a​ company's general​ ledger? A....

Which of the following business events may not be recorded in a​ company's general​ ledger?

A.

The company paid each of its employees a Christmas bonus.

B.

The company issued 100 shares of common stock.

C.

The company purchased two acres of land for future plant expansion.

D.

A lawsuit has been filed by one of the​ company's customers​ (against the​ company).

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Answer #1

The following event will not be recorded in a ​company's general​ ledger:

A lawsuit has been filed by one of the​ company's customers​ (against the​ company).

Correct option is (D)

Only those transactions are recorded in company's general​ ledger which involve money. Non monetary transactions cannot be recorded in ​company's general​ ledger.

Filing of lawsuit by a customer is an event which does not involve any money. When company pays compensation to customer, it will be recorded in company's records.

All other transactions given in (A), (B) and (C) will be recorded in a ​company's general​ ledger:

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