Documentation of the Accounting System Allows

question 95

Multiple Choice

Documentation of the accounting system allows:

• A)The accountant to analyze and understand the procedures and business process and the systems that capture and record the accounting data.
• B)The non-accountant to create a picture or chart of what should happen within the accounting system.
• C)The investor to see inside the accounting system so that he / she can better understand the financial statements.
• D)The accountant to determine which financial statements will be necessary to properly report the results of operations.

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Definitions:

Real Property

Pertains to land and anything permanently attached to it, such as buildings, including the rights associated with ownership of land.

Uniform Commercial Code

A detailed collection of regulations for overseeing commercial activities in the USA, aimed at standardizing business statutes nationwide.

Sale of Goods

A commercial transaction in which a seller transfers or agrees to transfer goods to a buyer for a monetary consideration, under terms and conditions.

Writing Requirement

The writing requirement refers to legal stipulations that certain types of contracts or agreements must be in written form to be legally enforceable.