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Multiple Choice
Which of the following is NOT a type of accounting commonly used in business organizations?
A
Biological Accounting
B
Tax Accounting
C
Managerial Accounting
D
Financial Accounting
Verified step by step guidance
1
Understand the types of accounting commonly used in business organizations. These include Financial Accounting, Managerial Accounting, and Tax Accounting, which serve distinct purposes in tracking, analyzing, and reporting financial information.
Financial Accounting focuses on preparing financial statements for external stakeholders, such as investors and creditors, to provide a clear picture of the organization's financial health.
Managerial Accounting is used internally by management to make informed decisions, plan operations, and control costs. It emphasizes detailed reports tailored to specific managerial needs.
Tax Accounting deals with compliance with tax laws and regulations, ensuring accurate calculation and reporting of taxes owed by the organization.
Biological Accounting is not a recognized type of accounting in business organizations. It does not align with the established categories of accounting used in practice, making it the correct answer to the question.