The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of
A) auditing.
B) financial accounting.
C) managerial accounting.
D) cost accounting.

Question

Quizplus · Accepted Answer

Financial accounting is concerned with the preparation of financial statements of an organization to provide useful information to external users such as creditors, unions, suppliers, and others. These financial statements include the balance sheet, income statement, statement of cash flows, and statement of changes in equity. The goal of financial accounting is to provide reliable and relevant financial information to external users for making sound economic decisions about the organization.

The Preparation of Financial Statements for People Outside the Firm