All of the following are external events transaction except for:
A. a department store recognizing losses from shoplifting.
B. a department store running ads in a local newspaper.
C. a department store purchasing merchandise from a clothing manufacturer.
D. a department store selling clothing to customers on credit.

Think about each situation. Which answers deals with people or organizations outside of the company and which answers deals with just the company internally.

A. This is a recorded transaction within the company only.

B. The company is dealing with a newspaper, which is outside the company.

C. The company is dealing with a manufacturer, which is outside the company.

D. The company is dealing with customers, which is outside the company.