Which of the Following Is NOT an Objective of the Accounting

question 41

Multiple Choice

Which of the following is NOT an objective of the accounting system?

• A) Make sure a company only records profitable transactions
• B) Make sure a company only records valid transactions
• C) Make sure a company values transactions properly
• D) Make sure a company records transactions in the proper time period

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Definitions:

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the base for the calculation of the next period's interest.

Lump Sum Payment

A payment made in a single lump sum amount, often used in the context of paying off debts or settling transactions.

Sinking Fund

A reserve fund established by setting aside revenue over a period of time to fund a future capital expense or repay a long-term debt.

Year-end Amounts

Refers to the final recorded figures of financial accounts at the end of the fiscal year, important for financial reporting and analysis.