Communication of Economic Events Is the Part of the Accounting

question 197

Multiple Choice

Communication of economic events is the part of the accounting process that involves

• A) identifying economic events.
• B) quantifying transactions into dollars and cents.
• C) preparing accounting reports.
• D) recording and classifying information.

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Definitions:

Contingent Payment

A payment that is not guaranteed but depends on the occurrence of a certain event or condition in the future.

Cash Flows

The complete sum of funds moving into and out of an enterprise, predominantly affecting its ability to cover short-term obligations.

Time Value

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.