Select the choice that describes the type of transaction and whether it should be recorded in the accounting system. (Choices may be used more than once.)
-Common shares are issued to investors.

Question

Quizplus · Accepted Answer

Issuing common shares to investors is an external event because it involves a transaction with parties outside of the company. It should be recorded in the accounting system as it affects the company's financial position by increasing equity.

Select the Choice That Describes the Type of Transaction and Whether