Introduction to Accounting · Class 11 · CBSE · Commerce Accountancy
Which of the following is considered the primary function of accounting?
Practice question from Introduction to Accounting (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-D983ED
Which of the following is considered the primary function of accounting?
- A.To maintain ledgers of all personal accounts
- B.To record financial transactions and events of a business systematicallyCorrect answer
- C.To compute the exact tax liability for government authorities
- D.To audit the financial statements prepared by other firms
Solution
The fundamental role of accounting is to systematically record financial transactions and events so that meaningful financial reports can be generated.
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