The Importance of Accounting in Analysis and Decision Making
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Questions and Answers

Which of the following is a key purpose of accounting?

  • To analyze financial statements (correct)
  • To keep records
  • To organize economic activity
  • To make informed economic decisions

    • Accounting data is used by both current and potential investors to make investment decisions. What type of decisions are made based on accounting data?

  • Marketing decisions
  • Investment decisions (correct)
  • Human resource decisions
  • Operational decisions

    • What happens if records are not properly kept and acted upon?

  • The economy will suffer (correct)
  • The economy will thrive
  • The economy will become more efficient
  • The economy will remain the same

    • What is one of the most used methods for keeping records?

    <p>Accounting</p> Signup and view all the answers

    What metrics can be derived from the accounting information system's data?

    <p>Profitability metrics</p> Signup and view all the answers

    Which of the following is a key purpose of accounting?

    <p>To keep records</p> Signup and view all the answers

    What can be derived from the accounting information system's data?

    <p>All of the above</p> Signup and view all the answers

    Who uses accounting data to make investment decisions?

    <p>Both current and potential investors</p> Signup and view all the answers

    What happens if records are not properly kept and acted upon?

    <p>Business executives will operate blindly</p> Signup and view all the answers

    What is one of the key reasons why accounting is important?

    <p>To make informed economic decisions</p> Signup and view all the answers

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