Which of the Following Is NOT One of the Main

question 1

Multiple Choice

Which of the following is NOT one of the main functions of an accounting system?

• A)Safeguard the accounting data
• B)Store data
• C)Analyze and use data
• D)Provide financial information to stakeholders

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Definitions:

Fair Value Hedge

A type of hedging strategy used to mitigate risk by adjusting the fair value of a hedged asset or liability to reflect changes in market conditions.

Foreign Exchange Gain

A gain resulting from changes in exchange rates between currencies, affecting the value of foreign currency-denominated assets or liabilities.

Consolidated Income Statement

A consolidated income statement presents the financial performance of a parent company and its subsidiaries as one combined entity.

Forward Exchange Contract

A financial agreement between parties to exchange currencies at a predetermined future date and rate.