A _____ Is an Economic Event That Under Generally Accepted

question 55

Multiple Choice

A _____ is an economic event that under generally accepted accounting principles affects an element of the financial statements and must be recorded.

• A) framework
• B) control
• C) set of rules
• D) transaction

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Definitions:

Medium of Exchange

A go-between resource or framework designed to support the transfer, acquisition, or exchange of commodities among participants.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Foregone Interest

The potential interest income lost by choosing an alternative investment or spending decision instead of the present option that yields interest.

FDIC Insurance

A federal guarantee of safety for depositor funds in member banks, up to a defined limit.