Financial accounting information is:
A)Designed to assist investors and creditors.
B)Not used by managers and in income tax returns.
C)Called "special-purpose" accounting information.
D)Not applicable to individuals.

Question

Quizplus · Accepted Answer

Financial accounting information is primarily designed to assist investors and creditors in making informed decisions about investing and lending activities.

Answer: C 
 Financial accounting information is often referred to as "special-purpose" accounting information because it is specifically intended for external users such as investors and creditors, as opposed to internal users such as managers.

Answers B and D are both incorrect. Financial accounting information is used by managers in making business decisions and is also required for income tax returns. It is applicable to both individuals and organizations.

Financial Accounting Information Is