Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

Name: Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.
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Question

Quizplus · Accepted Answer

Internal events that affect the financial position of the firm, such as depreciation of assets or inventory adjustments, do require entries in the firm's accounts to accurately reflect the firm's financial status.

Because Events That Are Internal to the Firm Are Not