Which of the Following Is Not a Role of Accounting

question 131

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 other 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:

Novation

The act of replacing an existing obligation with a new one, thereby extinguishing the original obligation.

Substituted Contract

This is a legal agreement replacing an earlier contract, agreed upon by all parties involved, and discharging the original contractual obligations.

Obligee

The party in a contract or agreement who is entitled to receive a performance or benefit from the obligor.

Obligor

An individual or entity legally obliged to provide a payment or service to another party under the terms of a contract.