Which of the following is not a basic function of an accounting system?
A)To interpret and record the effects of business transactions.
B)To classify the effects of similar transactions in a manner that permits determination of various totals and subtotals useful to management.
C)To ensure that a business organization will be managed profitably.
D)To summarize and communicate information to decision makers.

Question

Quizplus · Accepted Answer

While an accounting system does provide information that can be used to make informed decisions regarding profitability, ensuring a business organization will be managed profitably is not a basic function of an accounting system. The basic functions of an accounting system are to interpret and record the effects of business transactions, to classify the effects of similar transactions in a manner that permits determination of various totals and subtotals useful to management, and to summarize and communicate information to decision makers.

Which of the Following Is Not a Basic Function of an Accounting