Meaning Of Accounting - SS1 Accounting Past Questions and Answers - page 1
Which of the following best describes accounting?
The process of recording, classifying, summarizing, and interpreting financial transactions and events of an organization.
The process of managing human resources in an organization.
The process of developing marketing strategies for an organization.
The process of producing goods and services for an organization.
What is the main goal of accounting?
To provide accurate and reliable information about an organization's financial position, performance, and cash flow.
To manage human resources in an organization.
To develop marketing strategies for an organization.
To produce goods and services for an organization.
What are the activities involved in accounting?
Preparing financial statements, analyzing financial data, reconciling accounts, and complying with financial regulations and standards.
Managing human resources in an organization.
Developing marketing strategies for an organization.
Producing goods and services for an organization.
Who uses the information provided by accounting?
Employees of the organization
Managers, investors, creditors, and other stakeholders.
Customers of the organization.
Competitors of the organization.
Why is accounting important for the success and sustainability of any organization?
Accounting provides accurate and reliable information about an organization's financial position, performance, and cash flow. This information is used by managers, investors, creditors, and other stakeholders to make informed decisions about the organization. Therefore, accounting helps an organization to make better decisions, manage resources effectively, and achieve its goals.
What are the various activities involved in accounting?
Accounting involves various activities, such as recording financial transactions, classifying them, summarizing them, interpreting financial data, preparing financial statements, analyzing financial performance, reconciling accounts, complying with financial regulations and standards, and providing financial information to stakeholders.