Which of the following best describes cloud computing?

Study for the Financial Information Associate Certificate Test with comprehensive questions, hints, and explanations. Prepare effectively and boost your confidence for the exam!

Cloud computing is best described as a network of remote servers used for data processing and management. This definition captures the essence of cloud computing, which enables users to access and manage their data and applications over the internet rather than relying on local systems. It allows for scalability, flexibility, and a pay-as-you-go model that significantly enhances resource management for both individuals and organizations.

The architecture behind cloud computing typically involves multiple servers located in various data centers, leveraging the internet for seamless connectivity. This infrastructure supports various services, such as storage, computing power, and application hosting, which are delivered on-demand, enabling dynamic resource allocation and increasing efficiency.

The other options describe traditional computing methods. Local storage and on-premise server management indicate reliance on physical servers or devices located on-site, which contrasts sharply with the remote and scalable nature of cloud computing. Additionally, a single computer system managing its own data does not leverage the collaborative and distributed characteristics that define cloud services, focusing instead on standalone operations. Therefore, the answer accurately reflects the fundamental principles of cloud computing as a versatile and efficient approach to data and resource management.

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