Accounting Information Is Used to Do All of the Following

question 3

Multiple Choice

Accounting information is used to do all of the following except:

• A)Prepare financial statements for investors
• B)Prepare tax returns for the IRS
• C)Prepare reports for management
• D)Prepare meeting minutes for the board of directors

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Definitions:

Assets

Resources owned by a business that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts owed by a company to third parties, which must be settled over time through the transfer of assets, provision of services, or other means.

Supplies Expense

Costs associated with consumable items used in the operation of a business, such as office supplies, which are expensed as used.

Total Expenses

The sum of all costs and expenses, operational or non-operational, incurred by a business during a specific period.