The preparation of financial statements for people outside the firm (creditors,unions,suppliers,and others)is the goal of:
A)cost accounting.
B)auditing.
C)financial accounting.
D)managerial accounting.

Question

Quizplus · Accepted Answer

Financial accounting is focused on providing information to external stakeholders such as investors, creditors, and regulatory agencies. The primary goal of financial accounting is to prepare accurate and reliable financial statements that reflect the financial position, performance, and cash flows of a company that can be used by external stakeholders to make decisions. Conversely, cost accounting, managerial accounting, and auditing are focused on providing information for internal decision-making and control purposes.

The Preparation of Financial Statements for People Outside the Firm