Financial accounting is the process of:
A) preparing and reporting accounting information for external decision makers.
B) preparing and reporting accounting information for internal decision makers.
C) enacting generally accepted accounting principles.
D) preparing and reporting accounting information to lenders.

Question

Quizplus · Accepted Answer

Financial accounting is concerned with providing information for external decision makers, such as investors, creditors, and regulatory bodies. This information is typically reported in financial statements such as the balance sheet, income statement, and statement of cash flows. The goal of financial accounting is to provide relevant, reliable, and understandable information to these stakeholders to help them make informed decisions.

Financial Accounting Is the Process Of