Which one of the following statements is true?
A)External events (transactions)involve interactions between an entity and a party outside the entity.
B)Every event or transaction that affects an entity is identified from a source document.
C)All economic events can be reliably measured.
D)The movement of raw materials into production is an external event.

Question

Quizplus · Accepted Answer

External events involve interactions between an entity and a party outside the entity, such as a sale to a customer or a purchase from a supplier. Option B is incorrect as some events may not have a physical source document, such as an adjustment made for depreciation. Option C is incorrect as some economic events, such as the loss of reputation or goodwill, cannot be reliably measured. Option D is incorrect as the movement of raw materials into production is an internal event, not an external event.

Which One of the Following Statements Is True