A basic purpose of accounting is to:

Question

Quizplus · Accepted Answer

The primary purpose of accounting is to provide financial information that is useful to decision makers such as investors, creditors, managers, and other stakeholders in the organization. It helps in decision-making related to investment, lending, credit, and other financial decisions. While showing a profit is an important aspect of accounting, it is not the sole purpose of accounting. Accounting does not track employee productivity nor is it a tool for the human relations department.

A Basic Purpose of Accounting Is To