Financial accounting
A)is primarily concerned with internal reporting.
B)is more concerned with verifiable,historical information than is cost accounting.
C)focuses on the parts of the organization rather than the whole.
D)is specifically directed at management decision-making needs.

Question

Quizplus · Accepted Answer

Financial accounting is concerned with producing financial statements that provide historical information about the financial position and performance of the organization. This information is used by external stakeholders such as investors, creditors, and regulators. Verifiability is an important characteristic of financial accounting information because it enhances its credibility and reliability. Cost accounting, on the other hand, is more concerned with providing information for internal decision-making and planning purposes. Option A, C, and D are incorrect because financial accounting is primarily concerned with external reporting, the whole organization, and providing information to external stakeholders, respectively.

Financial Accounting