What process would provide shareholders or creditors with information about the overall financial performance of a firm?
A) accrual accounting
B) internal auditing
C) financial accounting
D) managerial accounting

Question

Quizplus · Accepted Answer

Financial accounting is the process of preparing and presenting financial statements, such as an income statement and balance sheet, which provide information about the overall financial performance of a firm. These statements are made available to shareholders and creditors to help them make informed investment or lending decisions. Accrual accounting, internal auditing, and managerial accounting are all important aspects of accounting but do not provide the same level of overview and transparency as financial accounting.

What Process Would Provide Shareholders or Creditors with Information About