Question

Accounting is called the 'language of business' because:

• A. It is used for business communication with customers
• B. It translates business transactions into meaningful information for decision-makers
• C. It is simple and easy to understand
• D. It is used worldwide

Answer 1

Answer:

B. It translates business transactions into meaningful information for decision-makers

MEANING AND DEFINITION

• Accounting is an information system which receives data inputs, process the same and give its ouput, in the form of information which is useful for decision making.

• Accounting is also called the language of Business.

Definition

• American Institute of certified public Accountant (AICPA)(1941) Defines Accounting is an art of recording, classifying and summarising in a significant manner and in terms of money, transaction and events which are in part, at least of a financial character and interpreting results thereof.