The Objectives of an Accounting System Include All of the Following,except

question 15

Multiple Choice

The objectives of an accounting system include all of the following,except:

• A)Interpret and record the effects of business transactions.
• B)Classify the effects of transactions to facilitate the preparation of reports.
• C)Summarize and communicate information to decision makers.
• D)Dictate the specific types of business transactions the enterprise may pursue.

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Definitions:

Fair Value

The approximate value for which an asset or liability might be traded between informed, willing participants in a fair deal.

Grant Date

The date on which an employee is given the option to purchase stock at a set price.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of public company financial statements.

Statement of Financial Position

A financial statement detailing an organization's assets, liabilities, and equity at a specific point in time, known as the balance sheet.