Which of the Following Criteria Does NOT Have to Be

question 4

Multiple Choice

Which of the following criteria does NOT have to be met before an event or transaction should be recorded for accounting purposes?

• A) The event or transaction must be an external event.
• B) The event or transaction can be measured objectively in financial terms.
• C) The event or transaction is relevant and reliable.
• D) The event or transaction must meet the definition of an element.

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Shortage

A scenario in which the need for a product surpasses the amount available at a particular price.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price level in a given period.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices.