- 1 Marks
Question
One of the basic roles of accounting is to:
A. Detect fraud
B. Audit financial statements
C. Measure performance
D. Protect shareholders
E. Protect stakeholders
Answer
Answer:
C. Measure performance
Explanation:
One of the key purposes of accounting is to measure the financial performance of an entity. While accounting can provide useful information for detecting fraud or auditing financial statements, its primary role is to produce financial data that helps in evaluating the performance of the business.
- Tags: Financial Reporting, Performance Measurement, Role of Accounting
- Level: Level 1
- Topic: Scope and Purpose of Accounting
- Series: MAY 2022
- Uploader: Kwame Aikins