Which of the Following Is Not One of the Four

question 52

Multiple Choice

Which of the following is not one of the four objectives of accounting given by ASOBAT?

• A)To make decisions concerning the use of limited resources (including the identification of crucial decision areas) and to determine objectives and goals
• B)To direct and control an organization's human and material resources effectively
• C)To relate the evaluative framework of standards and guidelines to the objectives themselves
• D)To facilitate social functions and controls

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Definitions:

LIFO

Stands for Last In, First Out, an inventory valuation method which assumes that the last items placed in inventory are sold first.

Financial Statement

Documented records that outline the financial activities and condition of a business, individual, or other entity.

LIFO Reserve

The difference between the cost of inventory calculated under the LIFO method and its cost calculated under the FIFO method.

FIFO Firms

Companies that apply the First-In, First-Out method in their inventory management, recognizing the oldest inventory items as the first sold.