Although Accounting Has Several Specific Uses, the Overall Purpose of Accounting

question 304

Multiple Choice

Although accounting has several specific uses, the overall purpose of accounting can be summarized as

• A) to provide financial information that is useful to decision makers.
• B) to meet the legal requirements of the Financial Accounting Standards Board (FASB).
• C) to allow the government to track business activity levels.
• D) to compute the profit or loss and declared dividend of a business firm.

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Definitions:

Psychologists

Psychologists are professionals who study mental processes, behavior, and the psychological aspects of human experience.

Culture

The social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the members of a society or community.

Field of Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.