Accounting information focused on the needs of external users is
A) financial accounting.
B) managerial accounting.
C) claims accounting.
D) not-for-profit accounting.

Question

Quizplus · Accepted Answer

Financial accounting provides accounting information that is focused on the needs of external users, such as investors, creditors, and government agencies. It involves the preparation of financial statements, which are used to communicate the financial performance and position of a company to these external users. Managerial accounting, on the other hand, is focused on the needs of internal users, such as managers and employees, and is used to support decision making within the organization. Claims accounting is not a recognized term, and not-for-profit accounting is a specialized form of financial accounting that is focused on the unique accounting and reporting requirements of nonprofit organizations.

Accounting Information Focused on the Needs of External Users Is