Which of the following is the best description of accounting's role in business?
A) Accounting provides stockholders with information regarding the market value of the company's stocks.
B) Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company.
C) Accounting helps in decreasing the credit risk of the company.
D) Accounting is not responsible for providing any form of information to users. That is the role of the Information Systems Department.

Question

Quizplus · Accepted Answer

Accounting plays a crucial role in providing information to managers to run the business effectively and efficiently. It also provides information to other users such as investors, creditors, and government agencies to make important economic decisions regarding the company. Option A is incorrect as accounting provides information on the financial performance of the business, not the market value of stocks. Option C is also incorrect as accounting can assess the creditworthiness of a company, but it is not responsible for decreasing credit risk. Option D is incorrect as accounting plays a vital role in providing financial information to users.

Which of the Following Is the Best Description of Accounting's