Communicating information to external decision makers is accomplished through ___ as part of the process of ___.
A)Financial statements; bookkeeping
B)Financial statements; accounting
C)Journal entries; bookkeeping
D)Journal entries; accounting

Question

Quizplus · Accepted Answer

Communicating information to external decision makers is accomplished through financial statements as part of the process of accounting. Bookkeeping involves recording daily business transactions through journal entries, whereas accounting includes the preparation, analysis, and communication of financial information to decision makers. Financial statements, such as the income statement, balance sheet, and statement of cash flows, are the primary means of providing financial information to external decision makers.

Communicating Information to External Decision Makers Is Accomplished Through ___