Which of the Following Statements Does Not Apply to Accounting

question 46

Multiple Choice

Which of the following statements does not apply to accounting information?

• A) Accounting information meets the legitimate needs of external users.
• B) Accounting information is generated by only external activities.
• C) Accounting information communicates among parties transacting business with one another.
• D) Accounting information provides a basis for informed management decision making.

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Definitions:

Profit Sharing

A business practice where employees receive a share of the company's profits, in addition to their regular salary.

Compensation Items

Refers to the various forms of pay or rewards given to employees for their work, including salaries, bonuses, benefits, and perks.

Organizational Structure

A system that outlines how activities are directed in order to achieve an organization's goals, including the roles, responsibilities, and communication paths.

Negotiation

A dialogue between two or more parties aimed at reaching a consensus or resolving differences.