Final answer:
The correct answer is C: Making payments on all amounts owed. While this is a financial activity businesses engage in, it is not part of the process of measuring external transactions. Measuring external transactions primarily involves analyzing, recording, and evaluating the impact of transactions on the accounting equation.
Step-by-step explanation:
The student's question is regarding the process of measuring external transactions in accounting.
Among the options provided, the one which is not part of measuring external transactions is C: Making payments on all amounts owed. When measuring external transactions, accountants and business professionals typically follow these steps:
- Analysis of the transactions: Using source documents to analyze accounts affected by the transaction.
- Recording of transactions: Recording transactions in the appropriate accounts, which is often done in journals and ledgers.
- Evaluating the impact: Analyzing transactions for their effect on the accounting equation to ensure that the books remain balanced.
Making payments on all amounts owed is a part of the transaction processing system, but it is not specifically about measuring the transaction; it's about settling liabilities, which is a separate aspect of managing business finances.