Question

Accounting means ______.

Options

• Keeping an account of money received

• Keeping an account of money spent

• Keeping an account of Money spent and loan received.

• Keeping an account of money received and money spent.

Answer 1

Accounting means keeping an account of money received and money spent.

Explanation:

At its most fundamental level, accounting simply means keeping a detailed track of all financial transactions, specifically both inflows (money received) and outflows (money spent). Restricting it to simply receipts or just expenditures would give an incomplete view of an entity's financial activity.