Question

Which of the following is a non-financial transaction:
a. Purchase of goods
b. Purchase of goodwill
c. Sale of goods for cash
d. Death of key manager​

Answer 1

Answer:

obviously the answer is"D"

Answer 2

The death of a key manager is a non-financial transaction. Thus, the answer will be option D.

• Financial transactions are those which involve a change in the financial status of the involved parties. It usually involves an exchange of some kind.
• The purchase of goods is a financial transaction since it involves the exchange of money for goods. Hence, option A is incorrect.
• The purchase of goodwill is also a financial transaction since it involves paying money for buying goodwill. Hence, option B is incorrect.
• The sale of goods for cash involves the exchange of goods for cash. Thus, it is a financial transaction. Hence, option C is incorrect.
• The death of a key manager is a non-financial transaction. It does not involve any exchange. Hence, option D is the correct answer.
• Hence, The death of a key manager is a non-financial transaction.

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