Accountants refer to an economic event that affects a company's financial statements as a (A) transaction. (B) purchase event. (C) sale event. (D) recording event.

The correct answer is (A) transaction.

Explanation:

An accounting transaction can be defined as a commercial event that produces financial effects on the resources and sources from which those resources originate and therefore must be recorded in the accounting books as a Daily, Major, Balance Sheet that reflect the result of the year. Example: Purchase of a desk, payment of public services, etc. Transactions or commercial operations. generally they must be grounded or supported by commercial documents. These documents constitute the source of data for the accounting processes. They can be receipts, bills of exchange, promissory notes, invoices, credit notes, etc. Depending on the commercial law of each country will vary the mandatory accounting books that are legally required for each type of company.