The objectives of an accounting system include all of the following,except:
A)Interpret and record the effects of business transactions.
B)Classify the effects of transactions to facilitate the preparation of reports.
C)Summarize and communicate information to decision makers.
D)Dictate the specific types of business transactions that the enterprise may engage in.

Question

Quizplus · Accepted Answer

The accounting system should not dictate the types of business transactions that the enterprise may engage in. This is a decision that should be made by management based on strategic considerations and market demands. The function of the accounting system is to accurately record, classify, summarize, and communicate information about the transactions that have already occurred, not to limit or control the business activities of the enterprise. Therefore, option D is the correct answer as it is not an objective of the accounting system.

The Objectives of an Accounting System Include All of the Following,except