Which of the Following Is Not a Role of Accounting

question 112

Multiple Choice

Which of the following is not a role of accounting in business?

• A) to provide reports to users about the economic activities and conditions of a business
• B) to personally guarantee loans of the business
• C) to provide information to external users to determine the economic performance and condition of the business
• D) to assess the various informational needs of users and design an accounting system to meet those needs

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Definitions:

NPV Investment

An analysis method used to determine the present value of an investment's expected future cash flows minus the initial investment cost.

Credit Policy

The guidelines a company follows to determine how much credit to extend to customers.

Variable Costs

Costs that change when the quantity of output changes.

International Commerce

refers to the trade of goods and services across international boundaries, including the exchange of commodities, capital, and information.