Which of the following refers to accounting information that is used by investors, creditors, and other outside parties for analyzing management performance and decision-making?
A)Managerial accounting
B)Financial accounting
C)Income tax accounting
D)Institutional accounting

Question

Quizplus · Accepted Answer

Financial accounting is the branch of accounting that provides financial information to investors, creditors, and other external parties for the purpose of analyzing management performance and decision-making. Managerial accounting, on the other hand, is focused on providing information to internal stakeholders to support decision-making and improve business operations. Income tax accounting is specifically concerned with ensuring compliance with tax regulations and optimizing tax liability, while institutional accounting refers to the accounting practices used by specific types of institutions such as universities or hospitals.

Which of the Following Refers to Accounting Information That Is