Economic events that affect an entity's accounting equation, but that are not transactionsbetween the entity and outside parties are called:
A)Internal transactions.
B)External transactions.
C)Source documents.
D)Liabilities.
E)Prepaid expenses.

Question

Quizplus · Accepted Answer

Internal transactions refer to events that affect an entity's accounting equation, but do not involve any outside parties. These can include things like adjusting entries, depreciation, and transfers between different accounts within the entity. Therefore, choice A is the correct answer. Choices B, C, D, and E are all incorrect, as they either do not relate to events that affect the accounting equation, or they involve external parties.

Economic Events That Affect an Entity's Accounting Equation, but That