Accounting information serves a governance function when it is used by:
A)managers to make a business decision.
B)government officials to regulate the business and its financial records.
C)directors to oversee the business.
D)investors to vote on company policies.

Question

Quizplus · Accepted Answer

Accounting information is useful for directors to oversee and monitor the business and make informed decisions. Directors have a fiduciary duty to shareholders and other stakeholders to ensure that the business is being managed appropriately, and they can use accounting information to fulfill that responsibility. While accounting information can also be used by managers, government officials, and investors, in the context of serving a governance function, the primary users are the directors.

Accounting Information Serves a Governance Function When It Is Used