Which events are recorded in the accounting system?
A)External exchanges only
B)Internal events only
C)Both external exchanges and internal events
D)Transactions are not recorded in the accounting system

Question

Quizplus · Accepted Answer

Transactions include two types of events.External exchanges are exchanges involving assets,liabilities,and/or stockholders' equity between the company and someone else.Internal events do not involve exchanges with others outside the business,but rather occur within the company itself.Both are recoded in the accounting system.Some important activities that occur will not be captured by the accounting system because they are not transactions.

Which Events Are Recorded in the Accounting System