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Accounting is the process of collecting, recording, classifying, summarizing, reporting and analyzing which kind of activity?
ARecruitment activities of an organization
BMarketing activities of an organization
CProduction activities of an organization
DFinancial activities of an organization
Answer & Solution
Correct answer: D. Financial activities of an organization
1. Accounting is defined as collecting, recording, classifying, summarizing, reporting and analyzing financial activities.
2. The output is a set of reports that describe the financial condition of an organization.
3. Marketing, production and recruitment activities are business functions, not the activity accounting is built to track.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.1 Accounting: More than Numbers_
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