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 earn a large profit.
D)To reduce taxes owed for the business.
E)To establish credit for a company.

Question

Quizplus · Accepted Answer

The primary purpose of accounting is to identify, record, and communicate business transactions. Other purposes, such as earning a profit, reducing taxes, and establishing credit, may be secondary benefits of accounting, but the main function is to accurately document and report financial activity.

Which of the Following Is the Primary Purpose of Accounting