Which of the following things is NOT true about the accounting process?
A)it sometimes develops an imprecise picture of the franchise.
B)it can measure the exact worth of a franchise.
C)it consists of the measurement and record of money,assets,and resources and their flow through the franchise.
D)its records are not exact.

Question

Quizplus · Accepted Answer

Even good accounting records cannot measure the exact worth of a franchise.A common belief is that accounting records are exact-they are not.Neither the income statement nor the balance sheet information can give more than a rough picture of a business
The figures they contain are rough estimates.All businesses are highly dissimilar and complex and the actual cash,materials,land,buildings,inventory,incentives and morale make it impossible to develop a precise financial picture of the franchise.

Which of the Following Things Is NOT True About the Accounting