Asked by Oscar Zamora on May 28, 2024
Verified
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 external users to determine the economic performance and condition of the business
D) to assess the various informational needs of users and design an accounting system to meet those needs
Economic Activities
Activities related to the creation, dispersal, and use of products and services in an economic system.
Personal Guarantee
This is a legal promise made by an individual to repay the borrowing of a business entity in case it fails to do so, thus personally ensuring the debt.
Economic Performance
Economic performance refers to the evaluation of how effectively an economy or a specific entity manages its resources and meets its objectives, often measured in terms of productivity, efficiency, and growth.
- Familiarize oneself with the practice of recording and reporting of business events and their implications on financial statements.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
B
Explanation :
Accounting does not have a role in personally guaranteeing loans of a business. Its roles are to provide reports to users about the economic activities and conditions of a business, to provide information to external users to determine the economic performance and condition of the business, and to assess the various informational needs of users and design an accounting system to meet those needs.
Learning Objectives
- Familiarize oneself with the practice of recording and reporting of business events and their implications on financial statements.