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What is the definition of accounting according to the American Institute of Certified Public Accountants (AICPA)?
What is the definition of accounting according to the American Institute of Certified Public Accountants (AICPA)?
- The economic value of an item which is possessed by the enterprise
- The process of making effective choices by providing information on the financial status of the business
- The process of reporting, recording, interpreting and summarizing economic data
- The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof (correct)
What are assets in accounting?
What are assets in accounting?
- Items that can be transformed into cash or that generates income for the enterprise shortly
- The economic value of an obligation or debt
- The economic value of an item which is possessed by the enterprise (correct)
- The economic value of an obligation or debt that is payable by the enterprise to other establishment or individual
What does accounting help decision-makers with?
What does accounting help decision-makers with?
- Classifying and summarizing events in terms of money
- Making effective choices by providing information on the financial status of the business (correct)
- Transforming items into cash or generating income
- Recording and interpreting economic data
What is the significance of liabilities in accounting?
What is the significance of liabilities in accounting?
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What does accounting act as according to the text?
What does accounting act as according to the text?
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