To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.
A) financial accounting
B) cost accounting
C) follow-up auditing
D) social auditing

Question

Quizplus · Accepted Answer

Financial accounting involves preparing financial statements that provide information about a company's financial performance to external stakeholders.

To Give the Company's Stockholders, Creditors, and Other External Stakeholders