The primary objective of financial accounting is
A)To help organizations keep track of financing activities.
B)To prepare budgets.
C)To help an organization to keep track of its buying and selling of resources.
D)To help an organization define its ideas, goals, and actions.
E)To provide external reports to help users analyze an organization's activities.

Question

Quizplus · Accepted Answer

The primary objective of financial accounting is to provide external users, such as investors and creditors, with financial reports that help them analyze an organization's activities. Financial accounting helps these users make informed decisions about whether to invest in or lend money to an organization. Choices A, B, C, and D are not the primary objectives of financial accounting.

The Primary Objective of Financial Accounting Is