The primary objective of financial accounting is to:
A) Provide accounting information that serves external users.
B) Serve the decision-making needs of internal users.
C) Monitor and control company activities.
D) Provide information on both the costs and benefits of looking after products and services.
E) Know what, when, and how much product to produce.

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with providing financial information that external users, such as investors, creditors, and regulators, can use to make informed decisions about the company. Internal users, such as managers, may also use this information, but that is not the primary objective of financial accounting.

The Primary Objective of Financial Accounting Is To