A basic purpose of accounting is to:
A)track employee productivity.
B)act as a tool for the human relations department.
C)provide financial information that is useful to decision makers.
D)show a profit.

Question

Quizplus · Accepted Answer

The main purpose of accounting is to provide financial information that is useful to decision makers, such as investors, creditors, and management. Accounting helps these stakeholders to make informed decisions about the financial health and performance of a business. It is not primarily focused on tracking employee productivity or acting as a tool for the human relations department, although it may indirectly impact these areas. While showing a profit is an important outcome of accounting, it is not the primary purpose.

A Basic Purpose of Accounting Is To