The basic purpose of bookkeeping is to:
A)Provide financial information about an economic entity.
B)Develop the types of information best-suited to specific managerial decisions.
C)Record the financial transactions of an economic entity.
D)Determine the taxable income of individuals and business entities.

Question

Quizplus · Accepted Answer

The basic purpose of bookkeeping is to record the financial transactions of an economic entity. While providing financial information and developing information for managerial decisions are important functions of accounting, they build upon the foundation of accurate record-keeping. Determining taxable income is a function of taxation, not bookkeeping.

The Basic Purpose of Bookkeeping Is To