A detailed system of accounts allows the preparer of financial statements to decompose, or __________, each transaction to convey information about the effects of the transaction.
A)mixup
B)disaggregate
C)aggregate
D)share
E)combine

Question

Quizplus · Accepted Answer

To decompose means to break down into smaller parts or components. In the context of accounting, a detailed system of accounts allows the preparer of financial statements to break down each transaction into its component parts or accounts, which can then be analyzed and aggregated to convey information about the effects of the transaction on the company's financial position and performance. Therefore, the best choice is B, which means to break down or disassemble.

A Detailed System of Accounts Allows the Preparer of Financial