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

question 76

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:

Perceptual Set

A mental predisposition to perceive one thing and not another, influenced by expectations, emotions, and experiences.

Gestalt Psychologist

A psychologist who studies how people perceive and experience objects as whole patterns or configurations, not just as simple sums of their parts.

Negative Afterimages

A visual phenomenon where an image continues to appear in one's vision after the exposure to the original image has ceased.

Opponent-Process Theory

A psychological and neurological model that accounts for a wide range of behaviors, including color vision. This theory suggests that emotions are paired in a way that when one is activated, the other is suppressed.