Which of the Following Is an Underlying Condition That in Part

question 42

Multiple Choice

Which of the following is an underlying condition that in part creates the demand by users for reliable information?

• A)Economic transactions that are numerous and complex
• B)Decisions are time-sensitive
• C)Users separated from accounting records by distance and time
• D)Financial decisions that are important to investors and users
• E)All of these

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Definitions:

Perpetual Inventory Method

An accounting method that continuously tracks inventory levels and cost of goods sold, updating the accounts after each transaction.

General Journal Entry

A record in the general journal that represents a transaction and shows the accounts and amounts debited and credited.

F.O.B Shipping Point

F.O.B Shipping Point (Free on Board Shipping Point) is a shipping term indicating that the buyer assumes ownership and risk of the goods being shipped as soon as they leave the seller's premises.

Perpetual Inventory Method

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.