The most lucrative activity of public accountants typically is:

• A. Tax preparation and planning
• B. Management consulting services
• C. Bookkeeping services
• D. Auditing financial statements

Answer: (B)

Verified step by step guidance

1. Understand the roles and services provided by public accountants, which include tax preparation and planning, management consulting services, bookkeeping services, and auditing financial statements.
2. Recognize that 'lucrative' refers to the activity that generates the most revenue or profit for public accountants.
3. Analyze each option: Tax preparation and planning involves assisting clients with tax filings and strategies, which can be profitable but is often seasonal. Management consulting services involve advising businesses on improving operations, strategy, and efficiency, which can command higher fees due to the specialized expertise required.
4. Consider bookkeeping services, which involve recording financial transactions. While essential, this service is typically less profitable due to its routine nature and lower fees.
5. Evaluate auditing financial statements, which involves verifying the accuracy of financial records. While important, it may not be as lucrative as management consulting services due to regulatory constraints and competitive pricing.