The branch of accounting that is concerned with providing information to present and potential creditors of an enterprise is
A) auditing.
B) managerial accounting.
C) financial accounting.
D) income tax accounting.

Question

Quizplus · Accepted Answer

Financial accounting is concerned with providing information to present and potential creditors of an enterprise. It involves the preparation of financial statements, such as the balance sheet and income statement, which provide information on the financial position and performance of a company. This information is important to creditors as they assess the creditworthiness of the company and the likelihood of repayment. Auditing is the examination of financial statements by an independent auditor, while managerial accounting is concerned with providing information to internal users such as managers for decision-making. Income tax accounting is focused on calculating and reporting a company's income tax liability.

The Branch of Accounting That Is Concerned with Providing Information