The Use of Digital Technology and the Internet to Execute

question 27

Multiple Choice

The use of digital technology and the Internet to execute the major business processes in the enterprise is called:

• A) e-commerce.
• B) e-business.
• C) enterprise applications.
• D) MIS.
• E) KWM.

Identify and describe different types of intangible assets and their characteristics.

Understand depletion and its accounting treatment for natural resources.

Explain the financial impact of maintenance expenditures on assets and their classification.

Differentiate between the accounting treatments of various transactions involving fixed assets, intangible assets, and natural resources.

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Definitions:

Revenue

Revenue is the total amount of money that a company receives from its activities, mainly from sales of products or services, before any expenses are subtracted.

Original Cost

The purchase price of an asset or service, including installation fees, transportation charges, and any other expenses necessary to make the asset operational.

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during an accounting period.