Financial accounting focuses primarily on reporting:
A)to parties outside of an organization.
B)to parties within an organization.
C)to an organization's board of directors.
D)to ﬁnancial institutions.
E)for ﬁnancial institutions.

Question

Quizplus · Accepted Answer

Financial accounting is concerned with providing financial information to parties outside of an organization, such as investors, creditors, and regulators. This information is typically in the form of financial statements, which summarize the financial performance and position of the organization. Parties within an organization, such as managers and employees, may also use financial information for decision-making, but this falls under the purview of managerial accounting.

Financial Accounting Focuses Primarily on Reporting