Accounting Consists of Three Basic Activities Which Are Related to Economic

question 144

Multiple Choice

Accounting consists of three basic activities which are related to economic events of an organization. These include

• A) identifying, recording, and communicating
• B) identifying, calculating, and responding
• C) classifying, numbering, and reporting
• D) issuing, reporting, and classifying

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Definitions:

Expected Utility

A theory in economics that calculates the anticipated utility resulting from different outcomes in risky or uncertain situations.

Utility

(Of a consumer) a measure of the satisfaction derived from consumption of goods and services.

Probability

The measurement of the likelihood of a specific event or outcome occurring.

Insurance Premium

The amount of money that an individual or business must pay for an insurance policy.