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:

Useful Life

The estimated period over which a fixed asset is expected to be usable by the entity, affecting its depreciation calculation.

Straight-Line Method

An accounting method of depreciating fixed assets evenly over their useful lives.

Depreciation Expense

Depreciation expense is the systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it can be sold for or its scrap value.