Which of the Following Does Not Describe Accounting

question 91

Multiple Choice

Which of the following does not describe accounting?

• A)It is commonly referred to as the language of business.
• B)It is an end rather than a means to an end.
• C)It is useful for decision-making.
• D)It is used by businesses,governments,non-profit organizations,and individuals.

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Definitions:

Credit Sales

Transactions where the goods or services are provided to the customer with the understanding that payment will be made at a later date.

Short-Term Financial Policy

A strategic approach focusing on managing a company's short-term liabilities and assets, vital for ensuring liquidity and operational efficienc.

Financial Distress

A situation where a company cannot meet or has difficulty paying off its financial obligations to creditors, potentially leading to bankruptcy.

Net Working Capital

The disparity between a business's present assets and its immediate obligations, showcasing the company's short-term financial health.