Question

The prime objective of accounting is to _________________.

• A. To record economic data
• B. Provide the information basis of action
• C. Classifying and recording business transaction
• D. Attainment of economic goal

Answer 1

The correct option is C Classifying and recording business transaction

Accounting is an art of recording, classifying, summarizing and interpreting the data in a significant manner of money's worth business transactions.

The prime function of accounting is to classify and record all such business transaction. It plays an important role in providing appropriate information to the business for decision making.