The primary purpose of accounting is to:
A) help people make decisions about economic activities.
B) provide information that management can use to convince shareholders that management deserves high salaries.
C) provide employment to persons who have a knack for dealing with numbers.
D) minimise the amount of profit that a firm has earned.

Question

Quizplus · Accepted Answer

The primary purpose of accounting is to provide information that can be used by individuals and businesses to make decisions about economic activities, such as investing, financing, and operating. Accounting helps to provide a clear picture of a company's financial position, performance, and cashflows, which is important in evaluating investment opportunities, assessing risks and rewards, and making strategic decisions.

The Primary Purpose of Accounting Is To