Question

question 9 (3.333 points)
which of the following is an internal financial transaction?
a) allocating prepaid insurance to the month
b) paying wages to an employee for the week
c) buying material for a job with cash
d) purchasing material for a job on account

Explanation:

Internal financial transactions are those that occur within a company without involving an external party. Allocating prepaid insurance is an internal adjustment. Paying wages (involves an external employee), buying materials with cash (involves an external seller), and purchasing on account (involves an external creditor) are external transactions.

Answer:

A. Allocating prepaid insurance to the month