Which Of The Following Is The Most Appropriate Definition Of Accounting Information? | MCQ Answer

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 order to provide updated, accurate, useful and reliable information to concerned parties. The use of advanced computerized software eases the workload and increase the accuracy and efficiency of accounting information.