All of the Following Statements Are Correct Except

question 154

Multiple Choice

All of the following statements are correct except

• A)Good decision-making depends on good information.
• B)A vital element in communicating economic events is the accountant's ability to analyze and interpret reported information.
• C)The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract.
• D)The information that a user of financial information needs depends upon the kinds of decisions the user makes.

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Definitions:

Taxable Income

Income on which tax must be paid; total income minus exemptions and deductions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that goes to taxes.

Depreciable Equipment

Tangible assets used in operations that lose value over time due to wear and tear, which can be written off as an expense for tax purposes over its useful life.

Net Income

The ultimate profit a company makes, determined by taking away all expenses, taxes, and costs from the total income generated.