Which of the Following Is the Best Description of Accounting's

question 124

Multiple Choice

Which of the following is the best description of accounting's role in business?

• A) Accounting provides stockholders with information regarding the market value of the company's stocks.
• B) Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company.
• C) Accounting helps in decreasing the credit risk of the company.
• D) Accounting is not responsible for providing any form of information to users. That is the role of the Information Systems Department.

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Definitions:

Behavior

The actions, reactions, or conduct of an individual or group in response to external or internal stimuli.

Informal

Characterized by a casual or unofficial form, manner, or nature, often contrasting with formal structures or protocols.

Cohesiveness

The degree to which members of a group or organization are united in their goals and work together effectively.

Productivity

Relationship between the number of units produced and the number of human and other production inputs necessary to produce them.