Which of the Following Statements Is True Regarding Economic Events

question 108

Multiple Choice

Which of the following statements is true regarding economic events?

• A)The signing of a service contract is an example of an external event that is recorded in the accounting records.
• B)Every event which affects an entity can be identified from a source document.
• C)All internal and external events must be measured with sufficient reliability.
• D)External events involve exchanges between an entity and another entity outside the company.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess whether a company has sufficient cash to fulfill its operations and obligations.

Budgeted Disbursements

Planned cash outflows for a specific period, including expenses, investments, and other payments.

Desired Balance

The targeted amount of money or level of assets an individual or organization aims to maintain.

Budgeted Receipts

Estimated amount of money expected to be received over a certain period, often used in financial planning.