Which of the following areas within the accounting field has as its main purpose serving the information needs of parties outside the reporting firm?
A) Financial accounting.
B) Tax accounting.
C) Managerial accounting.
D) Auditing.

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with the preparation and reporting of financial statements for external users, such as investors, creditors, and regulatory bodies. Other areas, such as tax accounting and managerial accounting, focus on different aspects of accounting and serve different information needs. Auditing involves the independent examination of financial statements to ensure their accuracy and compliance with accounting standards, and can serve both internal and external parties.

Which of the Following Areas Within the Accounting Field Has