Which of the following statements is true?
A)Only the effects of internal transactions must be recognized and recorded in the entity's accounting system.
B)An internal event is a transaction between an entity and its environment.
C)Not all recognizable events are supported by a standard source document.
D)Only the effects of external events must be recognized,measured,and recorded in an entity's accounting system.

Question

Quizplus · Accepted Answer

This statement is true because some events, such as changes in estimates or errors, may not have a standard source document but still need to be recognized and recorded in the entity's accounting system. The other statements are false. Internal transactions must also be recognized and recorded, external events are not the only ones that need to be recognized, and an internal event is a transaction within the entity, not with its environment.

Which of the Following Statements Is True