Of the following specialized types of accounting, which is focused on the information needs of investors and creditors external to the entity?
A) Tax accounting.
B) Regulatory accounting.
C) Financial accounting.
D) Management accounting.

Question

Quizplus · Accepted Answer

Financial accounting is designed to provide information about the financial position and performance of an entity that is useful to a wide range of users in making economic decisions, including investors and creditors. This contrasts with management accounting, which is focused on internal decision-making, tax accounting, which deals with tax compliance and strategy, and regulatory accounting, which is concerned with adhering to specific regulatory frameworks.

Of the Following Specialized Types of Accounting, Which Is Focused