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:

Buying Property

The process of acquiring ownership of land or buildings, typically for residential, commercial, or investment purposes.

Operating Activities

These are the day-to-day actions that involve the production, sales, and delivery of a company's products or services, as reported in the cash flow statement.

Dividends Paid

The total amount of dividends that a company distributes to its shareholders during a specific period.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.