Accounting information serves a governance function when it is used by:
A)managers to make a business decision.
B)government officials to regulate the business and its financial records.
C)directors to oversee the business.
D)analysts to vote on company policies.

Question

Quizplus · Accepted Answer

Directors are responsible for overseeing and governing the business, including monitoring financial performance, internal controls, and compliance with legal and regulatory requirements. Accounting information plays a critical role in enabling them to fulfill this responsibility by providing them with accurate and reliable data to make informed decisions and ensure accountability. While accounting information is also valuable for other stakeholders, such as managers and analysts, its primary function in corporate governance is to support the board of directors.

Accounting Information Serves a Governance Function When It Is Used