Financial accounting can be broadly defined as the area of accounting that prepares financial statements to be used
A) by parties internal to the business enterprise only.
B) by investors only.
C) by parties both internal and external to the business enterprise.
D) primarily by external users and Canada Revenue Agency.

Question

Quizplus · Accepted Answer

Financial accounting involves preparing financial statements that are used by both internal and external parties to the business enterprise, such as investors, creditors, government agencies, and other stakeholders to make business decisions. While financial accounting does provide information for tax purposes, it is not limited to the Canada Revenue Agency and primarily serves external users.

Financial Accounting Can Be Broadly Defined as the Area of Accounting