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:

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Growth Needs

Refers to psychological or emotional requirements for personal development, often relating to self-actualization and the fulfillment of one's potential.

Cognitive Needs

The mental requirements necessary for an individual’s growth and development, involving the ability to process information, reason, remember, and relate.

Cardiac Rehabilitation

A medically supervised program designed to improve cardiovascular health for patients after a heart attack, heart failure, angioplasty, or heart surgery.