Financial accounting is defined as the use of management information to plan,evaluate,and control within the organization and to ensure appropriate use and accountability for its resources.

Question

Quizplus · Accepted Answer

This definition is incorrect. Financial accounting is the branch of accounting concerned with the preparation of financial statements for external users such as investors, creditors, and regulators. It focuses on recording and reporting financial transactions in accordance with Generally Accepted Accounting Principles (GAAP).

Financial Accounting Is Defined as the Use of Management Information