The Primary Objective of Accounting Is to

question 101

Multiple Choice

The primary objective of accounting is to

• A)implement strong internal controls.
• B)provide useful information to decision makers.
• C)prepare financial statements.
• D)ensure the profitability of an organization.

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Definitions:

Participatory Process

A decision-making approach that involves input and active involvement from all stakeholders or group members.

Budgeting

The process of creating a plan to spend your money over a specified period, outlining projected income and expenses.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specified period, helping manage cash flow and liquidity.

Capital Expenditures Budget

A budget that outlines planned investments in long-term assets and projects, emphasizing spending on acquiring or upgrading physical assets.