Financial accounting can be broadly defined as the area of accounting that prepares financial statements to be used
A)by parties internal to the business enterprise only.
B)by investors only.
C)by parties both internal and external to the business enterprise.
D)primarily by management.

Question

Quizplus · Accepted Answer

Financial accounting prepares financial statements that are useful to both internal and external parties, such as shareholders, creditors, and regulatory authorities. While internal parties such as management may also use these statements, the primary purpose of financial accounting is to provide information to stakeholders outside of the business enterprise.

Financial Accounting Can Be Broadly Defined as the Area of Accounting