A primary purpose of accounting is to:

• A. Manage the day-to-day operations of a business
• B. Provide financial information to users for decision-making
• C. Set prices for goods and services
• D. Develop marketing strategies

Answer: (B)

Verified step by step guidance

1. Understand the primary purpose of accounting: Accounting is a system used to record, summarize, and report financial transactions to provide useful information to stakeholders.
2. Identify the key stakeholders: Stakeholders include investors, creditors, management, and other users who rely on financial information for decision-making purposes.
3. Clarify the role of financial information: Financial information helps users assess the financial health, performance, and future prospects of a business, enabling informed decisions.
4. Differentiate accounting from other business functions: While accounting provides financial data, other functions like marketing and operations focus on strategies and day-to-day activities.
5. Conclude that the primary purpose of accounting is to provide financial information to users for decision-making, as it supports critical decisions regarding investments, loans, and business strategies.