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:

Par Value

Par value is the nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Articles of Incorporation

A document filed with a state by the founders of a corporation detailing the major components of a company, such as its objectives, structure, and planned operations.

Authorized Stock

The maximum amount of stock that a corporation is legally permitted to issue, as authorized by its corporate charter.

State Charter

is an official authorization for the creation and operation of a corporation, bank, or other organization within a specific state.