Which of the following statements best describes accounting?
A)An information system in which the underlying economic conditions of organizations are recorded, summarized, and reported.
B)The reports that management prepares for the owners of the company summarizing how the company performed during the period.
C)An information system in which all transactions with the company are accurately reported.
D)The reports that management prepares for use in making decisions related to the financing, investing and operating activities of a company.

Question

Quizplus · Accepted Answer

Accounting is an information system that records, summarizes, and reports the underlying economic conditions of organizations. It involves identifying, measuring, and communicating financial information to users such as investors, creditors, and regulatory agencies. The purpose of accounting is to provide useful information for decision-making, planning, and control within an organization.

Which of the Following Statements Best Describes Accounting