Which of the following statements is correct regarding the concept of environmental accounting?
A) It is a method of incorporating the costs of depleting the company's assets into the financial statements of the company.
B) It has been used to show the profits of a company.
C) It does not apply to government organisations.
D) It is a part of the ASX Listing Rules.

Question

Quizplus · Accepted Answer

Environmental accounting is a method of incorporating the costs of depleting the company's assets into the financial statements of the company. It involves identifying, measuring, and reporting the costs and benefits associated with environmental activities and their impact on the company's financial performance. It helps a company to understand the financial implications of its environmental impact and make informed decisions to reduce its environmental costs and risks. B, C, and D statements are incorrect as they do not accurately describe the concept of environmental accounting.

Which of the Following Statements Is Correct Regarding the Concept