An exchange of value between two entities that yields a change in the accounting equation is called:

A) The accounting equation.
B) Recordkeeping or bookkeeping.
C) An external transaction.
D) An asset.
E) Net Income.

Question

Brandon Luong · Accepted Answer

Final Answer : C, Explanation :  An external transaction refers to an exchange of value between two entities that results in a change in the accounting equation, which includes assets, liabilities, and equity. The other options are not accurate definitions of this concept.

An exchange of value between two entities that yields a change in the accounting equation is called:

A) The accounting equation.
B) Recordkeeping or bookkeeping.
C) An external transaction.
D) An asset.
E) Net Income.

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Learning Objectives

Related questions

An exchange of value between two entities that yields a change in the accounting equation is called:A) The accounting equation.B) Recordkeeping or bookkeeping.C) An external transaction.D) An asset.E) Net Income.

Definitions

Learning Objectives

Learning Objectives

Related questions

An exchange of value between two entities that yields a change in the accounting equation is called:

A) The accounting equation.
B) Recordkeeping or bookkeeping.
C) An external transaction.
D) An asset.
E) Net Income.