The primary objective of financial accounting is:
A) To serve the decision-making needs of internal users.
B) To provide financial statements to help external users analyze an organization's activities.
C) To monitor and control company activities.
D) To provide information on both the costs and benefits of looking after products and services.
E) To know what, when, and how much to produce.

Question

Quizplus · Accepted Answer

The primary objective of financial accounting is to provide financial statements to help external users analyze an organization's activities. These financial statements include the income statement, balance sheet, and cash flow statement, which provide information on a company's performance, financial position, and cash flows respectively. This information is useful to investors, creditors, and other external stakeholders in making decisions about whether to invest, lend, or conduct business with the organization.

The Primary Objective of Financial Accounting Is