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Answer To The MCQ With Brief Explanation The correct answer is (B), as Modern Definition of Accounting defines the accounting information in such a way that identifies, records, and communicates the economic events, which ,obviously, can be expressed in terms of monetary value, of an organization or a business to interested users (both Internal and External Users, also called Users of Financial Information ). Modern Accounting definition emphasizes on the communication of information to interested parties which includes both internal (Owners, Board of Directors, Management, Employees, etc.) and external parties (Customers, Banks, Financial Institutions, Banks, etc.). These parties are the Users of Financial Statements. Communication of information includes all the accounting data which shows the business of a company. In modern accounting, useful information is provided withe use of technology such as computerized accounting in which software are used to record books of accounts in

Firstly, we find out Assets at the end, then we can calculate change in assets and change in Owners’ Equity. Given: Liabilities at the End = $25000   Owners’ Equity at the End = $125000 Find: Assets at the End = ? As we know Accounting Equation , so we have: Assets at the End = Liabilities at the End   +   Owners’ Equity at the End   Assets at the End =              $25000             +                    $125000   Assets at the End = $150000 Change In Assets      =    Assets At The End     -        Assets At The Beginning   Change In Assets      =             $150000             -                      $150000   Change In Assets = $0 So, Assets remained unchanged at $150000 As, we know: Change In Assets = Change In Liabilities + Change In Owners’ Equity To equalize both asset side and liabilities & equity side of accounting equation, it is clear that there is no change in liabilities & equity side as both sides are always equal, so we have: $0

The correct answer is (a). An Expense , as the use or consume of assets or services gives benefits to the business in conducting the daily operations of the business in order to earn Revenue for the business. Such as Rent Expense is incurred to receive the rent facility services from company / corpora tion and to use the assets in the business and in order to earn revenue from business operations.