Financial accounting is
A) the field of accounting concerned with external users of a company's financial information.
B) the rules and procedures governing the content and form of financial reports.
C) a systematic examination of a company's accounting system to determine whether its financial reports fairly represent its operations.
D) a bookkeeping system that balances the accounting equation by recording the dual effects of every financial transaction.
E) a field of accounting that serves internal users of a company's financial information.

Question

Quizplus · Accepted Answer

Financial accounting is the field of accounting that focuses on providing financial information to external users such as investors, creditors, and regulators. This includes preparing financial statements such as the balance sheet, income statement, and cash flow statement, as well as adhering to accounting principles and standards. Financial accounting is different from managerial accounting which serves internal users such as management for decision-making purposes.

Financial Accounting Is