Multiple Choice
Decisions about financing refer to the:
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1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following statements best describes accounting?
A
Accounting is solely concerned with the management of a company's human resources.
B
Accounting is the process of selling goods and services to customers.
C
Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information for decision-making.
D
Accounting is the study of market trends and consumer behavior.
Verified step by step guidance1
Step 1: Understand the definition of accounting. Accounting is the systematic process of recording, classifying, summarizing, and interpreting financial transactions to provide useful information for decision-making.
Step 2: Analyze the options provided in the question. Eliminate choices that do not align with the core functions of accounting, such as managing human resources, selling goods and services, or studying market trends and consumer behavior.
Step 3: Focus on the correct option, which highlights the essential activities of accounting: recording, classifying, and summarizing financial transactions.
Step 4: Recognize that accounting serves as a tool for decision-making by providing stakeholders with accurate and relevant financial information.
Step 5: Confirm that the correct answer is: 'Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information for decision-making.'
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