1. Of all the events that occur each day, how would you describe those that are recorded in a firm's accounting records?
2. In order for a transaction to be recorded in a business' accounting records, the effects of the transaction must be reliably measurable in dollars. What is reliable measurement and why is it important?
3. What is the basic process used in transaction analysis?
4. In analyzing a transaction, can a transaction only affect one side of the accounting equation? If so, give an example.