Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed is called
A) recording.
B) analyzing.
C) classifying.
D) interpreting.

Question

Quizplus · Accepted Answer

Analyzing involves examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed. Recording involves entering the transaction or event into the accounting system, classifying involves categorizing the transaction or event into the appropriate account, and interpreting involves explaining the meaning of the financial information.

Examining a Transaction or Event to Determine Its Fundamental Significance