The Approach to Accounting That Focuses Mainly on Providing Information

question 21

Multiple Choice

The approach to accounting that focuses mainly on providing information that enables owners to make money is the:

• A) triple bottom line approach.
• B) the stakeholder approach.
• C) the sustainability approach.
• D) the stewardship approach.

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Definitions:

Profit Margin

A financial metric that shows the percentage of a company's revenue that remains as profit after accounting for costs and expenses.

Net Income

The remaining earnings of a company following the deduction of all expenses and taxes from its total revenues.

Net Sales

This represents the amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Prepaid Expenses

Payments made in advance for goods or services, which are recognized as expenses over time as the benefits are received.