A firm's financial accounting system is concerned with internal information users.

Question

Quizplus · Accepted Answer

A firm's financial accounting system is primarily concerned with collecting, recording, and reporting financial information to external users, such as investors, creditors, and regulatory agencies. Internal information users typically rely on management accounting systems, which focus on providing information to support decision-making and control within the organization.

A Firm's Financial Accounting System Is Concerned with Internal Information