Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions.

Question

Quizplus · Accepted Answer

Accounting is a system that collects, analyzes, and communicates financial information about an entity to facilitate decision-making by users such as investors, creditors, managers, and government agencies. Its primary objective is to provide relevant, reliable, and timely information about the financial position, performance, and cash flows of an organization to support informed decision-making. Therefore, option A is correct as it correctly describes the nature and purpose of accounting as an information system.

Accounting Is an Information System That Provides Essential Data About