Which of the Following Is the Most Appropriate Definition of Accounting

question 7

Multiple Choice

Which of the following is the most appropriate definition of accounting?

• A)Electronic collection,organization,and communication of vast amounts of information
• B)The interconnected network of subsystems necessary to operate a business
• C)A means of recording transactions and keeping records
• D)The measurement,processing,and communication of financial information about an identifiable economic entity

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Definitions:

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Efficient Capital Market

A market where all relevant information is fully and immediately reflected in securities prices, ensuring that securities are always fairly priced.

Security Prices

The market value or price at which securities, such as stocks or bonds, are bought and sold.

Available Information

Data or facts that are accessible to the public and can be used to make educated decisions or analyses.