Eugene Is a Self-Employed Business Owner

question 66

Multiple Choice

Eugene is a self-employed business owner.In February 2011, he gathered together his income and expense records for 2010.He used them, along with appropriate software, to prepare his tax return, which he then transmitted to the Internal Revenue Service.Has Eugene used an accounting information system based on the definition provided in the text?

• A)Yes, because he used software to prepare his tax return.
• B)Yes, because all elements of the definition are present.
• C)No, because all accounting information systems must produce general purpose financial statements.
• D)No, because no internal decision maker is mentioned.

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Definitions:

Accumulated Depletion

The total amount of natural resource extraction that has been charged as an expense against a company's earnings.

Natural Resource

Materials or substances occurring in nature that can be exploited for economic gain, such as minerals, forests, and water.

Balance Sheet

A financial statement summarizing a company's assets, liabilities, and equity at a specific point in time.

Cost Of The Resource

The total financial investment required to acquire, maintain, and operate a resource over its useful life.