The Role of Accounting in Decision-Making Quiz
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Questions and Answers

What is the primary function of accounting according to the text?

  • To ensure accountability to stockholders
  • To direct the affairs of governmental agencies
  • To generate profit for businesses
  • To provide reliable information for decision-making (correct)

    • Who relies on accounting information according to the text?

  • Individuals and not-for-profit organizations
  • Government officials and corporate executives (correct)
  • Profit-seeking enterprises
  • Stockholders and the public

    • Why do profit-seeking enterprises need accounting?

  • To keep a diary of their business activities for decision-making (correct)
  • To ensure accountability to stockholders
  • To generate profit for the business
  • To direct the affairs of governmental agencies

    • What is the importance of accounting for large corporations according to the text?

    <p>They are accountable to many parties in society and have to report to stockholders, governmental agencies, and the public</p> Signup and view all the answers

    What is the role of accounting in the efficient distribution and use of resources?

    <p>To provide reliable information for sound decision-making</p> Signup and view all the answers

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