Question

Which of the following best describes the activities of the accounting function? 

a. inventory control, accounts payable, fixed assets, and payroll

b. fixed assets, accounts payable, cash disbursements, and cost accounting

c. purchasing, cash receipts, accounts payable, cash disbursements, and payroll

d. inventory control, cash receipts, accounts payable, cash disbursements, and payroll

e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll

Answer 1

The correct option is (e).

 

e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll.

 

Explanation:

The accounting function encompasses various activities related to financial management and reporting within an organization. These activities typically include inventory control (managing inventory levels and valuation), cost accounting (tracking and analyzing production costs), accounts payable (processing and managing vendor payments), cash disbursements (handling outgoing payments), and payroll (managing employee compensation). Option e covers these key accounting activities comprehensively.

The correct option is (e).