An Accounting Method That Is Specifically Intended to Be Used

question 94

Multiple Choice

An accounting method that is specifically intended to be used for planning,directing,and controlling a business is called:

• A) tax accounting.
• B) managerial accounting.
• C) benchmarking.
• D) forensic accounting.

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Definitions:

Liability Account

An accounting record representing an entity's obligations to pay debts or provide services to other entities in the future.

Expense Account

An account that records the costs incurred by a business during a period, such as rent, utilities, and salaries.

Dividends Declared

Profits that a company's board of directors has decided to distribute to its shareholders, typically in the form of cash payments or additional shares.

Cash Account

A financial account that records cash transactions, both receipts and disbursements, within a business.