BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Considers what new technology is best for the business at this time
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Delegates decisions to another department to avoid being blamed for mistakes
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To determine the legality of hiring one candidate over another
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To see whether the company can afford purchases
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Detailed explanation-1: -Which of the following is the best description of accounting’s role in business? Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company.
Detailed explanation-2: -Which of the following best describes accounting? It is an information system that provides reports to users regarding economic activities and condition of a business. Prepaid expenses, such as prepaid insurance, are an example of a liability.
Detailed explanation-3: -Prospective Investors The persons who are interested to make an investment in business will like to know about its profitability and financial position. Thus, they derive this information from the accounting reports of the business.
Detailed explanation-4: -Which definition best describes financial accounting? Measuring a company’s business activities and communicating those measurements to external parties.