What is the primary objective of accounting and how does QBO assist in achieving this objective?
A)The primary objective of accounting provides detailed information to users to prepare the tax return.QBO assists by feeding information directly into the specific areas of the return.
B)The primary objective of accounting is to provide information to the IRS to ensure the company is organized as the appropriate legal entity.QBO assists in ensuring the correct tax form is used.
C)The primary objective of accounting is to provide information for decision making and QBO is used to capture,track,sort,summarize,and communicate financial information.
D)The primary objective of accounting is to provide information to users outside of the company (investors,bankers,IRS,etc.)and QBO assists in tracking information to communicate to external users.

Question

Quizplus · Accepted Answer

The primary objective of accounting is to provide information for decision making, and QBO assists in achieving this objective by capturing, tracking, summarizing, and communicating financial information. This answer aligns with the general purpose of accounting, which is to provide useful financial information to users for decision making purposes. The other options are not accurate. Accounting serves more than just tax return preparation or legal entity organization, and QBO is not used solely for tax preparation or ensuring the correct tax form is used. Finally, while providing information to external users is an important function of accounting, it is not the primary objective.

What Is the Primary Objective of Accounting and How Does