Which of the following best describes the accounting system that provides information primarily for entities external to the organization?

Question

Quizplus · Accepted Answer

The financial accounting system provides information primarily for entities external to the organization, such as investors, creditors, and regulatory agencies. This system focuses on the preparation of financial statements, including the income statement, balance sheet, and cash flow statement, which are important tools for decision-making by external stakeholders. The cost accounting and managerial accounting systems, on the other hand, are more focused on providing information for internal use by managers and employees of the organization. The disbursement accounting system is specifically concerned with the payment of expenses and managing cash flow within the organization.

Which of the Following Best Describes the Accounting System That