Which of the following describes the primary objective of financial accounting?
A)To provide useful financial information only to stockholders.
B)To provide information about a business' future business strategies.
C)To provide useful financial information about a business to help external parties make informed decisions.
D)To provide useful financial information about a business to help internal parties make informed decisions.

Question

Quizplus · Accepted Answer

The primary objective of financial accounting is to provide useful financial information about a business to help external parties, such as investors, creditors, and regulators, make informed decisions. The information provided includes financial statements like balance sheets, income statements, and cash flow statements, which provide insights into the financial health of the business.

Which of the Following Describes the Primary Objective of Financial