Which of the Following Statements Is False About Financial Accounting

question 148

Multiple Choice

Which of the following statements is false about financial accounting?

• A)Financial accounting helps investors make decisions.
• B)Financial accounting provides sufficient information for managers to effectively plan and control operations.
• C)Financial accounting reports help creditors make decisions.
• D)Financial accounting provides external reports.

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Definitions:

Bad Debt Expense

Represents the expense associated with accounts receivable that a company does not expect to collect.

Service Charge Expense

Costs charged to customers for services provided, including fees for maintenance, support, or other service-related activities.

Accounts Receivable

Money owed to a business by its clients for goods or services provided on credit.

Visa and MasterCard

Global payment systems that facilitate transactions between merchants and card issuers to process credit and debit card payments.