BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Statement 1:The primary function of accounting is to prepare the financial reports and provide them for the economic decision makers. Statement 2:The purpose of accounting is to help financial users see the true picture of the business in social and psychological terms.
A
Only statement 1 is correct.
B
Only statement 2 is correct.
C
Both statements are correct.
D
Both statements are not correct.
Explanation: 

Detailed explanation-1: -The primary function of accounting is to maintain systematic accounting records of financial transactions and events.

Detailed explanation-2: -1.3 The purpose of accounting is to provide financial information that is useful in making economic decisions. It is the process of identifying, measuring, recording and communicating economic information to permit informed judgements and decisions by users of the information.

Detailed explanation-3: -The basic function of accounting is to provide useful information to the users for decision making.

Detailed explanation-4: -The primary purpose of financial reports is to provide information and data about a company’s financial position and performance, including profitability and cash flows.

There is 1 question to complete.
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