Questions: A primary purpose of accounting is to Multiple Choice allow for government tracking of business activities. make sure a business is paying its taxes. help managers make well-informed decisions. provide a method of spending money wisely.

A primary purpose of accounting is to

Multiple Choice
allow for government tracking of business activities.
make sure a business is paying its taxes.
help managers make well-informed decisions.
provide a method of spending money wisely.
Transcript text: A primary purpose of accounting is to Multiple Choice allow for government tracking of business activities. make sure a business is paying its taxes. help managers make well-informed decisions. provide a method of spending money wisely.
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Solution

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The answer is the third one: help managers make well-informed decisions.

Explanation for each option:

  1. Allow for government tracking of business activities.
    While accounting does provide information that can be used by the government to track business activities, this is not the primary purpose of accounting. It is more of a regulatory requirement.

  2. Make sure a business is paying its taxes.
    Accounting does help in calculating taxes owed by a business, but this is not its primary purpose. Tax compliance is a function of accounting, but not the main goal.

  3. Help managers make well-informed decisions.
    This is the primary purpose of accounting. Accounting provides financial information that is crucial for managers to make informed decisions about the operations, investments, and strategies of a business.

  4. Provide a method of spending money wisely.
    While accounting can help track spending and ensure that money is used efficiently, this is more of a benefit of accounting rather than its primary purpose.

In summary, the primary purpose of accounting is to provide relevant financial information to help managers make well-informed decisions.

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