What term refers to the economic events of an organization?

• A. Transactions
• B. Events
• C. Activities
• D. Occurrences

Answer: (A)

Transactions are economic events that affect a company's financial position and can be measured in monetary terms, forming the basis for recording in the accounting system. When something with financial impact occurs—such as selling goods, purchasing supplies, borrowing from a lender, or paying expenses—it is recorded as a transaction in the journal and reflected in the ledgers. This recording follows double-entry bookkeeping, ensuring at least two accounts are affected to keep the accounting equation in balance. The other terms are too general: events, activities, or occurrences can describe happenings in a business but do not inherently imply a monetary measurement or formal recording in the accounts.