Which one of the following best defines an internal event in terms of accounting?
A)Every type of transaction is an internal event
B)An event recognized in a set of financial statements
C)A happening of consequence to an entity
D)An event occurring entirely within an entity

Question

Quizplus · Accepted Answer

An internal event refers to an event occurring entirely within an entity, such as a change in value of an asset or liability. It is not necessarily recognized in a set of financial statements or a happening of consequence to an entity. Every type of transaction is not an internal event, as some transactions may involve external parties or entities.

Which One of the Following Best Defines an Internal Event