Question

The primary purpose of accounting is to

A. allow for government tracking of business activities.
B. make sure a business is paying its taxes.
C. help managers make well-informed decisions.
D. provide a method of spending money wisely.

Answer 1

The primary purpose of accounting is to help managers make well-informed decisions. Therefore, the correct option is C.

Step-by-step explanation:

The primary purpose of accounting is to help managers make well-informed decisions. Accounting provides financial information that allows managers to analyze the performance of a business, make informed decisions about resource allocation, and evaluate the effectiveness of various strategies. By tracking income, expenses, and other financial data, accounting helps managers understand the financial health of a business and make decisions that can lead to its success.