Foundational Accounting Concepts

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Questions and Answers

Which of the following best describes the role of accounting in today's business environment?

Accounting has shifted from record-keeping to providing relevant information for decision-making. (correct)
Accounting is solely focused on financial record-keeping functions.
Accounting has become obsolete in today's rapidly changing business environment.
Accounting is now primarily concerned with book-keeping and financial reports.

What is the main objective of accounting?

To provide information for internal users only.
To provide relevant information for decision-making to both internal and external users. (correct)
To provide information for external users only.
To record financial transactions.

Who are the users of accounting information?

Only internal users.
Accounting information is not used by any users.
Only external users.
Both internal and external users. (correct)

What are the basic terms used in accounting?

<p>Meaning, need, objectives, and role. (A)</p> Signup and view all the answers

How has the role of accountants changed over time?

<p>Accountants have shifted from being mere recorders of transactions to providing relevant information for decision-making. (A)</p> Signup and view all the answers

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