The Best Definition of an Accounting System Is

question 47

Multiple Choice

The best definition of an accounting system is:

• A) Journals, ledgers, and worksheets.
• B) Manual or computer-based records used in developing information about an entity for use by managers and also persons outside the organization.
• C) The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers.
• D) The concepts, principles, and standards specifying the information which should be included in financial statements, and how that information should be presenteD.Learning Objective: 01-02 Discuss the significance of accounting systems in generating reliable accounting information and understand the five components of internal control.

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Definitions:

Exchange Rate

The ratio of exchange between two currencies.

Exchange Rates

The rate at which one currency can be exchanged for another, which can fluctuate due to market forces.

Functional Currency

The money type utilized in the financial statements of a business, which is from the main economic setting where the business functions.

Local Currency

The currency of the country in which the foreign operation is based.