Accounting rules:
A)specifies the term of exchange,facilitating exchange between strangers.
B)increases the profitability of inventions,encouraging firms to develop new products.
C)provides the public with reliable information about the performance of a firm.
D)increases the risk faced by entrepreneurs.

Question

Quizplus · Accepted Answer

Accounting rules provide the public with reliable information about the performance of a firm, which in turn helps investors make informed decisions and promotes transparency in financial reporting. A and B do not accurately reflect the purpose or function of accounting rules, and D is not necessarily true as accounting rules help mitigate risk by ensuring accurate financial reporting.

Accounting Rules