Which Statement Best Describes an Open System

question 16

Multiple Choice

Which statement best describes an open system?

• A) Outputs are continuously reused in a sustainable cycle of production and consumption.
• B) Inputs are received from the environment, transformed and then returned to the environment.
• C) All the energy it needs is contained within itself.
• D) Products and services are used to make inputs.

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Definitions:

Expired Cost

A cost that has been incurred and recognized as an expense, reflecting the consumption of an asset or a service in generating revenue.

Monetary Unit Assumption

An assumption that requires that only those things that can be expressed in money are included in the accounting records.

Asset Prepayments

Payments made in advance for goods or services, recorded as assets on the balance sheet until used or expired.

Time Period Assumption

An accounting principle that allows the business operations to be divided into specific time periods for reporting purposes, such as months or years.