Which of the following statements is true of financial accounting?
A) Financial accounting is directed toward external users.
B) Financial accounting is subject to externally imposed rules.
C) Financial accounting is able to provide audited, objective financial information.
D) All of these are correct.

Question

Quizplus · Accepted Answer

All three statements are true. Financial accounting is primarily directed towards external users such as investors, creditors, and regulators. It is subject to externally imposed rules and regulations, such as Generally Accepted Accounting Principles (GAAP) in the United States. Additionally, financial statements prepared by financial accounting are often audited by independent third-party auditors, ensuring that the financial information presented is objective and reliable.

Which of the Following Statements Is True of Financial Accounting