Question

Which of the following statements best describes accounting?

• A. Accounting is the process of selling business goods and services.
• B. Accounting is an information system that receives data, processes it, and provides useful information for decision making.
• C. Accounting is only used for tax calculation.
• D. Accounting is a method for marketing products.

Answer 1

Answer:

B. Accounting is an information system that receives data, processes it, and provides useful information for decision making.

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.