If an event is considered to change assets, liabilities, or shareholders' equity with an appropriate monetary measure, then it is

Question

Quizplus · Accepted Answer

An event that changes assets, liabilities, or shareholders' equity in a measurable way is considered a financial transaction and must be recorded in the books of a company. Therefore, choice D is the correct answer. Choice A is partially correct but not the best choice as it does not accurately describe the recording aspect of the event. Choices B and C are not correct as they are unrelated to the scenario described in the question.

If an Event Is Considered to Change Assets, Liabilities, or Shareholders