Which type of accounting primarily focuses on the duties and obligations of businesses that contribute to the well-being of society?

• A. Managerial accounting
• B. Financial accounting
• C. Cost accounting
• D. Social accounting

Answer: (D)

Verified step by step guidance

1. Understand the concept of Social Accounting: Social accounting is a type of accounting that focuses on the social and environmental impact of a business's activities. It evaluates how businesses contribute to the well-being of society, including their ethical practices, sustainability efforts, and community involvement.
2. Differentiate Social Accounting from other types of accounting: Managerial accounting focuses on internal decision-making, financial accounting deals with external reporting of financial performance, and cost accounting analyzes costs for budgeting and efficiency. Social accounting, however, emphasizes societal and environmental responsibilities.
3. Recognize the purpose of Social Accounting: Its primary goal is to measure and report the social and environmental effects of a company's operations, ensuring accountability to stakeholders beyond just financial performance.
4. Identify examples of Social Accounting practices: These include reporting on carbon emissions, charitable contributions, employee welfare programs, and community development initiatives.
5. Understand the importance of Social Accounting: It helps businesses align their operations with societal values, build trust with stakeholders, and contribute positively to the community and environment.