In the context of accounting, which of the following best describes 'declaring war and coining money'?

• A. Auditing activities accounted for in auditing accounting
• B. Managerial activities accounted for in managerial accounting
• C. Financial activities accounted for in financial accounting
• D. Governmental activities accounted for in governmental accounting

Answer: (D)

Verified step by step guidance

1. Understand the context of the problem: The question is asking about the accounting category that best describes 'declaring war and coining money.' These activities are specific to government functions.
2. Review the types of accounting: Financial accounting deals with reporting financial information to external users, managerial accounting focuses on internal decision-making, auditing accounting ensures accuracy and compliance, and governmental accounting pertains to the financial activities of government entities.
3. Identify the nature of the activities: Declaring war and coining money are exclusive functions of the government, which are not related to business or corporate financial activities.
4. Match the activities to the correct accounting type: Since these activities are governmental in nature, they fall under the scope of governmental accounting, which tracks and reports financial information for government operations.
5. Conclude that the correct answer is 'Governmental activities accounted for in governmental accounting,' as this type of accounting is specifically designed to handle the financial aspects of government functions.