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:

Natural Business Year

The fiscal year that ends when a business's activities have reached the lowest point in its annual operating cycle, theoretically the most optimal time for financial reporting.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Contra Account

An account used in accounting to offset or reduce the balance of a related principal account.

Prepaid Expenses

Costs paid in advance for goods or services to be received in the future, which are recorded as assets until they are consumed.