The main purpose of financial accounting information is to:
A) Provide financial information for taxation purposes
B) Provide financial information to managers
C) Provide financial information for external users, such as shareholders and creditors
D) Provide financial information to customers

Question

Quizplus · Accepted Answer

The main purpose of financial accounting information is to provide financial information for external users, such as shareholders and creditors. This includes providing information about the financial performance, position, and cash flows of an entity, as well as other relevant financial information that can assist external users in making informed decisions about the entity. While financial accounting information may be used for taxation purposes and by managers, these are not the primary purposes of financial accounting information. Providing financial information to customers is also not a primary purpose of financial accounting information.

The Main Purpose of Financial Accounting Information Is To