Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Question

Quizplus · Accepted Answer

Financial accounting provides external reports that are intended for external users like investors, creditors, and regulatory agencies. Managerial accounting, on the other hand, provides internal reports that are intended for internal users like managers and employees to help in decision-making.

Financial Accounting Is the Area of Accounting That Provides Internal