Which of the following is the primary purpose of accounting?
A)To establish a business
B)To identify,record and communicate business transactions
C)To deceive stockholders
D)To keep from paying taxes
E)To establish credit for a company

Question

Quizplus · Accepted Answer

The primary purpose of accounting is to identify, record and communicate business transactions. This includes keeping track of financial transactions and producing financial statements that provide insight into a company's financial health. Accounting is essential for decision-making and planning by business owners, investors, creditors, and other stakeholders. Establishing a business, deceiving stockholders, avoiding taxes, and establishing credit for a company may be goals or outcomes of accounting, but they are not the primary purpose.

Which of the Following Is the Primary Purpose of Accounting