Which of the Following Statements Is True

question 103

Multiple Choice

Which of the following statements is true?

• A)Only the effects of internal transactions must be recognized and recorded in the entity's accounting system.
• B)An internal event is a transaction between an entity and its environment.
• C)Not all recognizable events are supported by a standard source document.
• D)Only the effects of external events must be recognized,measured,and recorded in an entity's accounting system.

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Definitions:

Automotive Industry

A sector of the economy that designs, develops, manufactures, markets, and sells motor vehicles.

Technical Analysts

Investment professionals who evaluate securities by analyzing statistics generated by market activity, such as past prices and volume.

Resistance Level

A price point on a stock chart where selling pressure is thought to exceed buying pressure, making it difficult for the price to rise further.

The Dow Line

A reference to Dow Theory, focusing on the movements of the Dow Jones Industrial Average to predict market trends.