Which of the following statements about financial accounting is CORRECT?
A) Financial accounting is oriented towards helping investors make decisions.
B) Financial accounting is forward-looking.
C) Financial accounting is focused on detailed reports on parts of the company.
D) Financial accounting is focused on planning and controlling operations.

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with providing information to external parties such as investors, creditors, and regulators to help them make decisions about the company's financial performance and position. It is historical in nature and looks back on a company's financial activities over a specific period of time. It is not forward-looking or focused on detailed reports on parts of the company, and while it may provide some information that can be useful for planning and control, that is not its primary purpose.

Which of the Following Statements About Financial Accounting Is CORRECT