All of the following statements are correct except 1. Good decision-making depends on good information. 2. A vital element in communicating economic events is the accountant's ability to analyze and interpret reported information. 3. The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract. 4. The information that a user of financial information needs depends upon the kinds of decisions the user makes.

Question

Makena Holloway

Business

25 March, 22:52

All of the following statements are correct except 1. Good decision-making depends on good information. 2. A vital element in communicating economic events is the accountant's ability to analyze and interpret reported information. 3. The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract. 4. The information that a user of financial information needs depends upon the kinds of decisions the user makes.

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Michaela Bond · Answer 1

3. The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract

Explanation:

Accounting deals with recording classifying, analyzing, interpreting and communicating financial information to various users. Be it cost accounting, managerial accounting or financial accounting, they are all used for decision making for both the managers of the organisation (as in managerial accounting) and other users of accounting information like shareholders, investors, lenders, general public etc.

The third statement "The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract" is said to be incorrect because Accounting is traced to the ancient Egyptians and Babylonians' developments in writing, counting and money and early auditing systems.