An External Event Involving a Transfer or Exchange Between Two

question 62

Multiple Choice

An external event involving a transfer or exchange between two or more entities or parties is called a(n)

• A) account.
• B) transaction.
• C) ledger.
• D) accounting system.

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Definitions:

Journal

A detailed record of all financial transactions, used as the primary source for all accounting entries.

Ledger

A comprehensive collection of a company's financial accounts, transactions, and balances over a period.

Structured Format

A specified and organized way of presenting or arranging information or data, typically following a predefined layout.

T-account

A graphical representation of a ledger account that is used for educating and understanding accounting.