Explore BrainMass

Explore BrainMass

    primary purpose of accounting

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com December 24, 2021, 4:45 pm ad1c9bdddf

    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.