Which of the following is the primary focus of financial accounting?
A) providing information that managers need to make operational decisions
B) providing summarized information on operational results to investors and creditors
C) providing information to managers to assist in planning, directing and controlling operations
D) providing highly detailed information on product lines, regions, and divisions

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with providing summarized information on operational results to investors and creditors. It focuses on providing external stakeholders with accurate and relevant financial information to assess the financial position and performance of an organization. Financial accounting reports, such as income statements, balance sheets, and cash flow statements, are prepared and presented in accordance with generally accepted accounting principles (GAAP) and provide a standardized way to communicate financial information to external stakeholders.

Which of the Following Is the Primary Focus of Financial