Question

Tracy wants to start her own business, but knows little about how to set up an accounting system or interpret financial information. "I'm not worried about accounting," she tells her friends. "I'll just hire a part-time bookkeeper to handle all that type of stuff, and focus my attention on what I like-finding ways to satisfy my customers." Which of the following is the best response to Tracy's comments?
A. Fine. Just make sure the bookkeeper you hire knows how to use a database, since this type of software is the heart of any efficient accounting system.
B. Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions.
C. You have a good plan. Only managers of large firms require knowledge of accounting. Owners and managers of small businesses can easily get by with just a part-time bookkeeper.
D. Most entrepreneurs would agree with your opinion. The work done by accountants is mainly clerical in nature, so time spent by business owners on accounting tends to take them away from more important tasks.

Answer 1

Answer:

The best response to Tracy's comments is:

B.  Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions.

Explanation:

Here in the given question it is mentioned that Tracy is wanting to start her own business but she has a very little knowledge about how to setup an accounting system and how the financial interpretation is been done.

So, she tells her friends that she is not at all worried about accounting. For this purpose she will be hiring a part time book keeper who will be handling all her stuff and who will also help her in focussing her attention in the different and innovative ideas of satisfying her customers.

Therefore, the best response to Tracy's comments can be given by:

B.   Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions.