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:

Job-Order Costing

A cost accounting system that accumulates costs per job, rather than by process or period, used for unique or custom orders.

Manufacturing Overhead

All manufacturing costs that are not directly assignable to specific units of production, including indirect materials, indirect labor, and other indirect costs.

Cost of Goods Sold

The total cost associated with making the products that a company sells during a period, including labor, materials, and overhead.

Balance Sheet

A report detailing a business's liabilities, assets, and equity held by shareholders at a particular moment, offering a glimpse into its financial status.