Ch. 3 - Processing Accounting Information Flashcards
1
Q
What are the two types of events that affect an entity?
A
- Internal events
2. External events
2
Q
What is the significance of source documents to the recording process?
A
Source documents are the basis for recording transactions. They provide the evidence, or documentation, needed to recognize an event for accounting purposes.
3
Q
What is a T account?
A
It is the format for showing amounts coming into and leaving an account
