Which of the Following Is the Primary Purpose of Accounting

question 40

Multiple Choice

Which of the following is the primary purpose of accounting?

• A)To establish a business.
• B)To identify,record,and communicate business transactions.
• C)To earn a large profit.
• D)To reduce taxes owed for the business.
• E)To establish credit for a company.

Understand intrinsic and extrinsic motives for working.

Recognize the role of thought processes in belief formation and judgment.

Understand career development stages and theories.

Recognize legal definitions and implications of sexual harassment and assault.

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Definitions:

Units

In the context of production, refers to individual items or quantities that are counted or measured.

Sold

The completion of a transaction where goods or services are exchanged for payment.

Variable Cost

Variable costs change in proportion to the level of business activity or production volume, such as raw materials and packaging.

Activity Level

Refers to the volume of production or operations within a specific period, influencing costs and operational capacity.