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

Question

Quizplus · Accepted Answer

The primary objective of external financial reporting is to provide useful economic information about a business to help external parties, primarily investors and creditors, make sound financial decisions.

Which of the Following Describes the Primary Objective of Financial