Accounting Is an Information and Measurement System That Does All

question 170

Multiple Choice

Accounting is an information and measurement system that does all of the following except:

• A)Identifies business activities.
• B)Records business activities.
• C)Communicates business activities.
• D)Eliminates the need for interpreting financial data.
• E)Helps people make better decisions.

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Definitions:

Cash Balance

The amount of cash held by a company at a given point in time.

Minimum Cash Balance

The lowest amount of cash that a company aims to hold in its bank accounts at any time to meet routine operational expenses.

Cash Receipts

Money received by a business, including payments from customers, cash sales, and other sources of income.

Budgeted Beginning

The initial planned value or quantity for financial accounts or inventory levels at the start of a budget period.