Transactions are recorded for all of the following reasons except
A) when the transaction causes a change in the financial position of the company.
B) to make all of the accounts balance.
C) when evidence of the transaction is available.
D) when there is a specific effect on the accounting equation.

Question

Quizplus · Accepted Answer

Transactions are not recorded just to make all accounts balance; they are recorded to reflect changes in financial position, when evidence is available, and when they affect the accounting equation.

Transactions Are Recorded for All of the Following Reasons Except