Which of the Following Is NOT One of the Ways

question 35

Multiple Choice

Which of the following is NOT one of the ways that technology has changed the way accounting is done?

• A) Technology easily allows companies to collect large amounts of data about transactions
• B) Technology allows greater access to a company's financial statements and other financial information
• C) Technology is able to perform the mechanics of accounting therefore, people are not required to understand the mechanics
• D) Technology allows for large amounts of data to be compiled quickly and accurately

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Definitions:

Liability

Financial obligations or debts owed by a company to external parties or individuals.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Deferred Tax Liability

Created when differences in financial reporting and tax reporting cause accounting income to be higher than tax income in a given period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to a net income or loss.