Although accounting has several specific uses, the overall purpose of accounting can be summarized as
A) to provide financial information that is useful to decision makers.
B) to meet the legal requirements of the Financial Accounting Standards Board (FASB).
C) to allow the government to track business activity levels.
D) to compute the profit or loss and declared dividend of a business firm.

Question

Quizplus · Accepted Answer

While accounting does have specific uses such as preparing financial statements and ensuring compliance with financial regulations, the overall purpose of accounting is to provide financial information that is useful to decision makers in making informed business decisions.

Although Accounting Has Several Specific Uses, the Overall Purpose of Accounting