Which of the following statements regarding the roles of accounting information is not true?
A)When creditors use accounting information to administer contracts,it serves a contracting role.
B)When accounting data are used to assess the worth of a company or its stock,the data are said to be used in a valuation role.
C)When accounting information is used in managing the business,it is being used in a management function.
D)When directors use financial information,the information is being used in an audit function.

Question

Quizplus · Accepted Answer

Directors using financial information would not be considered an audit function, as an audit function typically involves an independent third party reviewing financial records and providing an opinion on them. Instead, directors would likely be using financial information for management or decision-making purposes.

Which of the Following Statements Regarding the Roles of Accounting