External decision makers would not look primarily to financial accounting information to assist them in making decisions on:
A) Granting credit.
B) Capital budgeting.
C) Selecting stocks.
D) Mergers and acquisitions.

Question

Quizplus · Accepted Answer

Capital budgeting decisions are primarily internal decisions made by a company's management to invest in new projects or assets, focusing on the analysis of potential future earnings and cash flows. External decision makers, such as investors or creditors, would not primarily use financial accounting information for these decisions, as they are more concerned with the company's overall financial health and performance, rather than specific investment decisions made by the company.

External Decision Makers Would Not Look Primarily to Financial Accounting