Which of the Following Is Not a Role of Accounting

question 244

Multiple Choice

Which of the following is not a role of accounting in business?

• A) to provide reports to users about the economic activities and conditions of a business
• B) to personally guarantee loans of the business
• C) to provide information to external users to determine the economic performance and condition of the business
• D) to assess the various informational needs of users and design its accounting system to meet those needs

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor expenses.

Time Ticket

A document that indicates the employee, the hours worked, the account and job to be charged, and the total labor cost.

Personal Exemptions

Deductions allowed on individual income tax returns, reducing the amount of income subject to taxation, based on the taxpayer and dependents.

Job Number

An unique identifier assigned to a specific job or project for tracking costs, progress, and billing.