Which of the following statements best describes financial accounting?
A)An information system in which the underlying transactions of organization are captured,analyzed,and reported.
B)The reports that management prepares for the owners of the company summarizing how the company performed during the period.
C)An information system in which all transactions with the company are accurately reported.
D)The reports that management prepares for use in making decisions related to the financing,investing,and operating activities of a company.

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with capturing, analyzing, and reporting the underlying transactions of an organization. It is an information system that records financial transactions and events and presents the financial statements to external users to help them make informed decisions about the organization. Therefore, option A is the most appropriate description of its function. The other options appear to describe management accounting functions, which are focused on internal decision-making.

Which of the Following Statements Best Describes Financial Accounting