Which of the Following Statements Is Characteristic of Transactions

question 3

Multiple Choice

Which of the following statements is characteristic of transactions?

• A) Only the effects of internal transactions must be recognized and recorded in the accounting system.
• B) An internal transaction represents a business activity between an entity and its environment.
• C) Evidence used to record transactions affecting a business entity comes from source documents.
• D) Only the effects of external events must be recognized, measured, and recorded in an entity's accounting system.