The Conceptual Foundation of Accounting Does NOT Include

question 145

Multiple Choice

The conceptual foundation of accounting does NOT include:

• A)accounting objectives.
• B)fundamental qualitative characteristics.
• C)enhancing qualitative characteristics.
• D)decision making.

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Definitions:

Period Cost

Costs that are not directly tied to the production of goods and are expensed in the period they are incurred.

Financial Accounting

The practice of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.

Managerial Accounting

The practice of analyzing, presenting, and interpreting financial data to help managers make informed business decisions.

Economic Events

Transactions and occurrences that affect the financial position of a business, including sales, purchases, and investments.