Although accounting has several specific uses,the overall purpose of accounting can be summarized as:
A)To provide financial information that is useful to decision makers.
B)To meet the legal requirements of the Financial Accounting Standards Board FASB).
C)To allow the government to track business activity levels.
D)To compute the profit or loss and declared dividend of a business firm.

Question

Quizplus · Accepted Answer

The primary purpose of accounting is to provide financial information that is useful to decision makers, such as investors, creditors, and management. While accounting does need to meet legal requirements set by the FASB and the government may use accounting information to track business activity levels, these are not the overall purpose of accounting. Additionally, while accounting does involve computing the profit and loss of a business, this is just one aspect of providing financial information that is useful to decision makers.

Although Accounting Has Several Specific Uses,the Overall Purpose of Accounting