Which of the Following Statements Is True Regarding Economic Events

question 108

Multiple Choice

Which of the following statements is true regarding economic events?

• A)The signing of a service contract is an example of an external event that is recorded in the accounting records.
• B)Every event which affects an entity can be identified from a source document.
• C)All internal and external events must be measured with sufficient reliability.
• D)External events involve exchanges between an entity and another entity outside the company.

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Definitions:

Rationalize

To attempt to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Supply Base

The network of suppliers from which a company procures its goods, services, and materials.

Competitiveness

The ability of a company, country, or product to compete effectively and successfully in the market.

Purchased Materials

Goods and components bought from external suppliers for use in manufacturing processes or for resale.