The Main Purpose Of Accounting Is To Provide Information That Is Useful In Making Economic Decisions

Yes, it is true as "The Ultimate Goal Of Accounting Is To Provide Information That Is Useful For Economic Decision-Making". Accounting provides useful information to both Internal Users And External Users of Accounting Information for making rational and economic decision purposes. For example, if the net profit of $2000 from previous period increased to $7000 due to rapid increase in sales, which is very good, then it shows that the financial performance has very much improved and the investors (external users) are more willing to investment in the companyās business. This financial information helps them in their investment decisions to invest in the companyās business as it is an economical and beneficial decision for them due to higher profit or huge financial improvement to meet daily expenses of the business. The financial information of unit per cost is also helpful for the management to check which unit of the product manufactured is costly and which is the...