An Entity Is a Person, Place, Object, Event, or Concept

question 22

True/False

An entity is a person, place, object, event, or concept in the user environment about which the organization wishes to maintain data.

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Definitions:

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Recording Expenses

The process of documenting and categorizing expenditures in the financial records of an organization.

Current-Period Income

The net income earned by a business during the most recent accounting period.

Accrual Accounting

An accounting method where transactions are recorded when they are earned or incurred, not necessarily when cash changes hands, providing a more accurate financial picture.