An Exchange of Value Between Two Entities That Yields a Change

question 155

Multiple Choice

An exchange of value between two entities that yields a change in the accounting equation is called:

• A)The accounting equation.
• B)Recordkeeping or bookkeeping.
• C)An external transaction.
• D)An asset.
• E)Net Income.

---

Definitions:

Terminated

The condition of having been ended or concluded, often referring to employment, contracts, or services.

Parol Evidence

A rule in contract law that prevents the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary the contractual terms of a written contract.

Integrated Contract

A contract that is considered complete and final, where all the terms are included in the document itself, precluding oral or other external agreements.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party being charged, to be legally enforceable.