Question

Accounting is of primary importance to the ___________.

• A. proprietors and the manages
• B. creditors and workers
• C. debtors & government
• D. bankers & creditors

Answer 1

The correct option is A proprietors and the manages

Accounting is mainly concerned with the recording of financial data relating to the business operations in a significant and chronological manner. It is not only concerned with recording, classifying or summarizing the transactions but it also plays an important role in providing appropriate information to the business for decision making.

Accounting is of primary importance to the proprietor and the managers since they are the owners and the management of the business entity and all of the business operation.

All the other stakeholders make use of the financial statements for the purpose of making decisions whereas, proprietor and managers refer the financial statement to design policies and plans for the business entity.