Transactions are recorded for all of the following reasons EXCEPT
A) when the transaction causes a change in the financial position of the company.
B) to make all of the accounts balance.
C) when evidence of the transaction is available.
D) when there is a specific effect on the accounting equation.

Question

Quizplus · Accepted Answer

Transactions are recorded based on their impact on the financial position of the company, availability of evidence, and their effect on the accounting equation. Balancing accounts is a result of recording transactions correctly, not a reason for recording them.

Transactions Are Recorded for All of the Following Reasons EXCEPT