Purpose of an accounting system include all the following except: (a) Interpret and record the effects of business transaction (b) Classify the effects of transactions to facilitate the preparation of reports (c) Summarize and communicate information to decision markers (d) Dictate the specific types of business enterprise transactions that the enterprises may engage in
Answers
Explanation:
(d) Dictate the specific types of business enterprise transactions that the enterprises may engage in
Answer:
Correct option is:
(d) Dictate the specific types of business enterprise transactions that the enterprises may engage in.
Explanation:
An accounting system's purpose is to record business transactions, aggregate those transactions, and generate reports that decision makers can use to monitor, analyze, and improve operations. Accounting's goal is to collect and report financial information about a company's performance, financial position, and cash flows. This data is then used to make decisions about how to run the company, invest in it, or lend it money. A business can use an accounting system to keep track of all kinds of financial transactions, including purchases .
The exchange must have the following characteristics to be considered a business transaction:
- A monetary value must be attached to the transaction.
- In order for a transaction to take place, two parties must be involved.
- The transaction is for the benefit of the business entity, not for personal gain.
- Dictate the specific types of business enterprise transactions that the enterprises may engage.
A business transaction is an economic event that is recorded in an organization's accounting system with a third party. A transaction of this nature must be monetary in nature. Here are some examples of business transactions: Purchasing insurance from a company. Purchasing inventory from a vendor A business transaction is an economic event that is recorded in an organization's accounting system with a third party. A transaction of this nature must be monetary in nature. Purchasing insurance from an insurer is an example of a business transaction.
As a result, Purpose of an accounting system include all the following except: Dictate the specific types of business enterprise transactions that the enterprises may engage in.