Which of the following is considered a convenience benefit in financial accounting?

• A. The improvement of employee morale
• B. The ability to quickly access financial data for decision-making
• C. The reduction of tax liabilities through legal means
• D. The increase in company profitability

Answer: (B)

Verified step by step guidance

1. Understand the concept of 'convenience benefit' in financial accounting. A convenience benefit refers to advantages that make processes easier, faster, or more efficient, such as accessing financial data quickly for decision-making.
2. Analyze each option provided in the question to determine which aligns with the definition of a convenience benefit.
3. Option 1: 'The improvement of employee morale' - This is not a convenience benefit, as it relates to human resource management rather than financial accounting efficiency.
4. Option 3: 'The reduction of tax liabilities through legal means' - While this is a financial benefit, it is not a convenience benefit because it involves strategic tax planning rather than ease of access or efficiency.
5. Option 4: 'The increase in company profitability' - This is a financial outcome but not a convenience benefit. The correct answer is Option 2: 'The ability to quickly access financial data for decision-making,' as it directly relates to improving efficiency and ease in financial accounting processes.