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

Question

Quizplus · Accepted Answer

Financial accounting is focused on providing financial information to external stakeholders, such as investors, creditors, and regulators, to help them make informed decisions about the company. It is not forward-looking or focused on planning and controlling operations, and while it does provide detailed reports, these are typically for the company as a whole rather than specific parts.

Which of the Following Statements About Financial Accounting Is CORRECT