which of the following is the best description of accounting’s role in business? course hero

by Mrs. Cordie Jacobs DDS Published 2 years ago Updated 1 year ago 8 min read

What is the basic purpose of accounting Quizlet?

Jun 15, 2021 · 12. Which of the following isnota role of accounting in business? a. to provide reports to users about the economic activities and conditions of a business b. to personally guarantee loans of the business c. to provide information to external users to determine the economic performance and condition of the business d. to assess the various ...

Which of the following accounts have a normal credit balance?

Sep 09, 2015 · Accounting provides information to managers to operate the business and to other users to make decisionsregarding the economic condition of the company . Managerial accountants would be responsible for providing information regarding a. tax reports to government agencies b. profit reports to owners and management c. expansion of a product …

What is the importance of financial accounting?

Sep 03, 2019 · That is the role of the Information Systems Department. b. Accounting helps in decreasing the credit risk of the company. c. Accounting provides stockholders with information regarding the market value of the company's stocks. d. Accounting provides information to managers to operate the business and to other users to make decisions regarding the …

What are generally accepted accounting principles (GAAP)?

Transcribed image text: MC.01-60 Which of the following is the best description of accounting's role in business? Accounting provides stockholders with information regarding the market value of the mpanys s B Accounting helps in decreasing the credit risk of the company Accounting provides information to managers to operate the business and to other users to ms cs …

Which of the following is the best description of Accounting's role in business?

Which of the following is the best description of accounting's role in business? Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company.

Which of the following best describes Accounting?

Which of the following best describes accounting? It is an information system that provides reports to users regarding economic activities and condition of a business. Prepaid expenses, such as prepaid insurance, are an example of a liability.

Which of the following groups are considered to be external users of accounting information?

External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

What does the measurement principle require?

The measurement principle requires that amounts be objective and verifiable. An amount is objective if it is based upon independent, unbiased evidence. An amount is verifiable if it can be confirmed by a third party.

Which statement best describes the main aim of accounting?

The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.Jan 19, 2022

Which of the following best describes accounting principles in general quizlet?

Which of the following best describes accounting principles in general? They outline the fundamental rules and concepts and establish the framework on which detailed accounting standards are based. It provides guidance on how to record transactions when there is uncertainty.

What are external users?

Definition: An external user is a person outside of an organization who does not directly run its operations and uses financial or accounting information about that company to make decisions. In other words, it's someone who doesn't manage or work for a company but uses its financial information.

Which of the following is the external user of financial statements?

Creditor of the business is the external user of financial statements.Jun 26, 2021

Who are the external users of information?

External users of information include present and potential Investors (shareholders), Creditors (Banks and other Financial Institutions, Debenture holders and other Lenders) , Tax Authorities, Regulatory Agencies (Department of Company Affairs,Register of Companies), Securities Exchange Board of India,Labour Unions, ...

Why is measurement so important in accounting?

The method used in accounting measurement helps compare and evaluate accounting data. When a company uses standard accounting measurements, it becomes easier to compare certain variables over specific time frames and therefore allows a company to better understand how it operates.

What are the principles of measurement in education?

Some of the basic principles of measurement in educational evaluations would be raw scores, percentile ranks, derived scores, standard scores, etc. The process of obtaining a numerical description of the degree to which an individual possesses a particular characteristic.Aug 11, 2016

What is measurement in accounting theory?

7 However, the process of measurement is so integral to accounting theory that it cannot easily be separated from it. Measurement is defined as the assignment of numbers to the attributes or properties of objects being measured, which is exactly what accountants do.Oct 17, 2007

Answer

d. Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company.

New questions in Business

A graph has quantity on the x-axis and price (dollars) on the y-axis. A demand line goes through (20, 60), (40, 45), (60, 30). A supply line goes thro …

What is the purpose of a balance sheet?

The purpose of a balance sheet is to present a firm's assets, liabilities, and stockholders' equity on a given date. The purpose of a statement of cash flows is to report information about cash inflows and cash outflows during a period of time. The cash flows are grouped into three categories: operating activities, investing activities, ...

What is the purpose of a statement of stockholders' equity?

The purpose of a statement of stockholders' equity is to report the events causing a change in stockholders' equity for a period. These events include owner investments and dividends and the earning of net income or net loss. The purpose of a balance sheet is to present a firm's assets, liabilities, and stockholders' equity on a given date.

What is a corporation?

Answer: C. A corporation is a form of business organization that exists as a legal entity, subject to taxes, that issues shares of stock to its owners or shareholders in exchange for cash or other resources. (1.4) The communication activity of the accounting process must:

What is stockholder equity?

Answer: D. Stockholders' equity refers to the ownership (stockholder) claims on the assets of the business. Stockholders' equity represents a residual claim on the business's assets, that is, it is a claim on the assets of a business that remain after all the liabilities to creditors have been satisfied (net assets).

What is trial balance?

(1.6) A trial balance can be described as: A) A list of general ledger account titles and balances at a certain date.

What is trial balance in accounting?

The trial balance is a listing of all accounts from, the general ledger with their respective debit or credit balance.

What is the difference between assets and liabilities?

Assets are the economic resources of an enterprise that can be expressed in monetary terms. Liabilities are the obligations , or debts , that an enterprise must pay in cash or services at some time in the future because of past transactions or events.