Which of the Following Statements Best Describes Accounting

question 31

Multiple Choice

Which of the following statements best describes accounting?

• A)An information system in which the underlying economic conditions of organizations are recorded, summarized, and reported.
• B)The reports that management prepares for the owners of the company summarizing how the company performed during the period.
• C)An information system in which all transactions with the company are accurately reported.
• D)The reports that management prepares for use in making decisions related to the financing, investing and operating activities of a company.

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Definitions:

Sarbanes-Oxley Act of 2002

A U.S. federal law that established sweeping auditing and financial regulations for public companies to protect investors from fraudulent financial reporting.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Security

A financial instrument representing an ownership position, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.