In accounting an Economic event is referred to as:
Correct answer: C. Transaction
- A. Cash
- B. Bank statement
- C. Transaction
- D. Exchange of money
Explanation
An economic event that affects the financial position of a business is called a transaction. Cash and exchange of money are only particular forms of transactions, not the general term.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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