Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?

• A)Only the effects of internal transactions must be recognized and recorded in the accounting system.
• B)An internal transaction represents a business activity between an entity and its environment.
• C)Evidence used to record transactions affecting a business entity comes from source documents.
• D)Only the effects of external events must be recognized, measured, and recorded in an entity's accounting system.

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Definitions:

First Months

The initial period of time following an event, often characterized by significant adjustments, developments, or changes.

Resilience

The ability to recover quickly from difficulties or adapt to challenging circumstances.

Characteristics

Attributes or features that help to identify, describe, or quantify properties of an object, person, or phenomenon.

Baby Talk

A simplified form of language used by adults when speaking to babies and young children, characterized by high pitch, slow tempo, and exaggerated intonation.