Which of the following statements is true of financial accounting?
A) It provides information to investors needed for their investment decisions.
B) It provides forward-looking information needed for managing and delegating operations.
C) It focuses on detailed reports for parts of the company rather than the whole company.
D) It focuses on planning and controlling day-to-day operations.

Question

Quizplus · Accepted Answer

Financial accounting primarily provides information to investors and other external stakeholders who need to make investment decisions. It focuses on providing accurate and timely financial statements that summarize a company's financial performance and position, giving investors insight into the company's ability to generate profits and manage risks. B, C, and D are not accurate descriptions of financial accounting.

Which of the Following Statements Is True of Financial Accounting