Financial accounting serves external users by providing them with general-purpose financial statements.

Question

Quizplus · Accepted Answer

Financial accounting is primarily geared towards external users such as investors, creditors, and government agencies, who use the financial statements to make decisions regarding their investments, lending, and regulatory oversight. The financial statements provide a summary of a company's financial performance and position, including revenues, expenses, assets, liabilities, and equity.

Financial Accounting Serves External Users by Providing Them with General-Purpose