Any event that affects the financial position of an organization and requires recording is called a(n)________.
A) transaction
B) account
C) posting
D) recognition principle

Question

Quizplus · Accepted Answer

A transaction refers to any event or activity that affects a company's financial position and requires recording in the accounting system. This includes sales, purchases, payments, receipts, and other economic activities that result in a change of assets, liabilities, or equity. The recognition principle is a fundamental accounting concept that requires companies to record revenue when it is earned and expenses when they are incurred. Posting refers to the process of transferring journal entries to the general ledger accounts, while an account is a record that tracks changes in a specific asset, liability, or equity element.

Any Event That Affects the Financial Position of an Organization