Question

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

Answer 1

Record the financial transactions of an economic entity

Step-by-step explanation:

Bookkeeping is the recording of business transactions in the appropriate books of accounts. So bookkeeping takes raw data and converts it into information by recording it in books of accounts such as the Sales Day Book, General Journal or Purchases Day Book. Thus, the basic purpose of bookkeeping is to record the financial transactions of an economic entity.