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    The primary purpose of accounting is to:

    A) Certify the accuracy of records
    B) Maximize the amount of profit that a firm has earned
    C) Measure and report financial information of economic entities
    D) Provide useful information about economic entities for decision making.

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    Solution Preview

    The answer to the question is, all of the above.

    The primary purpose of accounting is to provide relevant information to both internal users (management) and external users such as investors, creditors, government, and the general public. Accounting is an integral part of the management of business and public organizations. Accountants, therefore, participate in planning, evaluating, and controlling the activities of the firm. Accounting is needed by external users in order to make investment decisions, grant or withhold credit, and, in the case of government, to ...

    Solution Summary

    The solution involves the fundamentals of accounting.