The Accounting Process Involves All of the Following except

question 97

Multiple Choice

The accounting process involves all of the following except

• A) identifying economic transactions that are relevant to the business.
• B) communicating financial information to users by preparing financial reports.
• C) recording nonquantifiable economic events.
• D) analyzing and interpreting financial reports.

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Definitions:

Profit Test

A determination to assess the viability and profitability of a project or investment by comparing costs against potential benefits.

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.