Which of the Following Statements Regarding the Roles of Accounting

question 36

Multiple Choice

Which of the following statements regarding the roles of accounting information is not true?

• A)When creditors use accounting information to administer contracts,it serves a contracting role.
• B)When accounting data are used to assess the worth of a company or its stock,the data are said to be used in a valuation role.
• C)When accounting information is used in managing the business,it is being used in a management function.
• D)When directors use financial information,the information is being used in an audit function.

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Definitions:

Political Campaigns

Activities aimed at influencing the decision making process within specific groups. Usually refers to efforts made to win elections or promote specific policies.

Nonvoting

Refers to individuals who are eligible to vote but choose not to participate in elections.

Voter Registration Law

Legislation that sets the requirements and process by which citizens register to vote in elections.

American Churches

Religious institutions in the United States, encompassing a wide variety of Christian denominations as well as other faith communities.