Which of the following is not an external event?

Payment of wages to the employees

The correct answer is option 3- Payment of wages to the employees.

Payment of wages to the employees is an internal event as employees are part of organisation. All other options are external events.

If an event involves transactions between an outsider and an organisation, these are known as external events. The following are the examples of such transactions-

• Sale of merchandise to the customers
• Rendering services to the customers by ABC Limited
• Purchase of materials from suppliers
• Payment of monthly rent to the landlord.

An internal event is an economic event that occurs entirely between the internal wings of an enterprise, e.g., supply of raw material or components by the stores department to the manufacturing department, payment of wages to the employees, etc.