Why Do Organizational Objectives Stress the Importance of Quality Information

question 93

Multiple Choice

Why do organizational objectives stress the importance of quality information?

• A) Quality information is required for accounting systems to operate effectively.
• B) Investors, creditors, managers, and other users rely on this information.
• C) The organization's reputation depends on the output of quality information.
• D) External auditors insist that the information provided them be of high quality.

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Definitions:

Nonprofit Corporation

An organization established for purposes other than making a profit, such as charitable, educational, or cultural.

Members

Individuals who are formally part of an organization, group, or body, often with specific rights and responsibilities.

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something before the owner is entitled to enter into that transaction with a third party.

Share Certificate

A physical document issued by a company that certifies ownership of a specific number of shares or stock in that company.