Internet

Definition

The internet is a global network of interconnected computers that communicate using standardized protocols to share information. It enables the transfer of data between devices and supports a wide range of applications and services.

5 Must Know Facts For Your Next Test

1. The internet facilitates real-time financial transactions and data sharing, essential for modern accrual accounting.
2. Cloud-based accounting software utilizes the internet to provide real-time updates and access to financial data.
3. Companies must ensure secure internet connections to protect sensitive financial information when capitalizing or expensing items.
4. Internet-based technologies like blockchain can impact how companies record and verify transactions in their accrual accounting processes.
5. Regulations like GDPR affect how companies manage and store financial data online, influencing decisions on capitalizing versus expensing.

Review Questions

• How does the use of the internet influence real-time financial transaction recording?
• Why is secure internet connectivity crucial in accounting practices?
• What are some regulatory considerations when managing financial data online?

Related terms

Cloud Computing: Delivery of computing services over the internet allowing for storage, processing, and access to data remotely.

Blockchain: A decentralized digital ledger that records transactions across multiple computers securely.

GDPR: General Data Protection Regulation, a law governing privacy and data protection in the European Union.