Multiple choice

On March 31, 2007 after sale of goods worth Rs. 10,000, there is closing stock of Rs. 20, 000. This is

  1. an event

  2. a transaction

  3. a transaction as well as an event

  4. neither a transaction nor an event
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A Correct answer
Explanation

The sale of goods worth Rs. 10,000 is a transaction because it involves an exchange (goods for money/credit). The closing stock of Rs. 20,000 existing on March 31, 2007 is merely an event - it's a state of affairs or fact at a specific date, not an exchange transaction. An event is something that happens or exists, while a transaction involves giving and taking.

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