One purpose of accounting is to:
A) Report financial information to people outside the firm
B) Report HR legal obligations
C) Keep track of laws related to advertising
D) All of the responses are correct

Question

Quizplus · Accepted Answer

One of the primary purposes of accounting is to report financial information to people outside the firm, such as investors, creditors, and regulatory bodies. This information helps them make informed decisions about the organization's performance and financial health. Accounting also serves internal purposes, such as helping to track and manage financial transactions within the organization. However, option B and C do not correctly reflect the primary purpose of accounting, making option A the best choice.

One Purpose of Accounting Is To