Accounting Systems Should Record

question 38

Multiple Choice

Accounting systems should record

• A) all economic events.
• B) events that result in a change in assets, liabilities, or shareholders' equity items.
• C) only events that involve cash.
• D) items of interest to the shareholders.

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Definitions:

Software

Computer programs necessary for directing the computer hardware to perform specific functions; refers to the application programs containing instructions to the computer that enable it to perform tasks. A computer, by itself, cannot do anything without software for accessing and inputting data.

CPU

The Central Processing Unit, also known as the CPU, is the main element of a computer responsible for executing the majority of computations within the system.

Hardware

The physical components of a computer system, including the processor, memory devices, and peripherals.

Software

Programs and operating information used by a computer to perform specific tasks.