Chapter 1 Introduction to accounting Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is the most important function of an accounting system? A) provide information for decision-making, planning and control. B) keep employees from embezzling funds. C) prepare accounting reports D) collect and record data. Answer: A Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting Topic: Nature and role of accounting AACSB: 8 – Application of knowledge 2) The best description of the primary purpose of providing accounting information is: A) to allow the preparation of a taxation return. B) to assist users in making informed decisions. C) to calculate the bank account balance. D) to enable the financial statements to be prepared. Answer: B Difficulty: Basic Learning Objective 1.1: Explain the nature and role of accounting Topic: Nature and role of accounting AACSB: 8 – Application of knowledge 3) The stages of an accounting system are: A) evaluation, processing, output. B) identification, recording, analysis, reporting. C) setting objectives, planning, analysis. D) none of the above. Answer: B Difficulty: Complex Learning Objective 1.1: Explain the nature and role of accounting Topic: Nature and role of accounting AACSB: 3 – Analytical thinking 4) What are the four key qualities of accounting information?