Which of the Following Is NOT a Purpose of Business

question 105

Multiple Choice

Which of the following is NOT a purpose of business reports?

• A)to convey information
• B)to answer questions
• C)to solve problems
• D)to provide instructions

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Definitions:

Prepaid Insurance

An asset account that represents the amount paid for insurance coverage in advance of the service period.

Depreciation Expense

Depreciation expense is the allocated reduction of the cost of a tangible fixed asset over its useful life, reflecting its wear and tear, or obsolescence.

Net Loss

The amount by which a company's expenses exceed its revenue over a specific period, indicating negative profitability.

Supplies on Hand

The value of supplies that have not yet been used by the company, classified as a current asset on the balance sheet.