Which definition below best describes financial accounting?

Question

Quizplus · Accepted Answer

Financial accounting is focused on measuring and communicating a company's financial performance and position to external parties, such as investors, creditors, and regulators. It involves the preparation of financial statements, including the balance sheet, income statement, and cash flow statement, which provide information about a company's assets, liabilities, revenues, expenses, and cash flows. Option A is incorrect because income taxes owed to the government are calculated by tax accounting, which is a separate field. Option B describes supply chain management or procurement, while option C refers to public relations or marketing.

Which Definition Below Best Describes Financial Accounting