Which type of accounting is concerned with providing information to external decision makers of the organisation?

Question

Quizplus · Accepted Answer

Financial accounting is concerned with providing information to external decision makers, such as investors, creditors, and government regulatory agencies. This type of accounting focuses on preparing financial statements, including the income statement, balance sheet, and cash flow statement, that can be used by external stakeholders to evaluate the financial health and performance of the organization. Management accounting, on the other hand, is focused on providing information to internal decision makers, such as managers and executives, to help them make informed business decisions. Private and public accounting refer to different types of accounting firms, but do not necessarily indicate the type of accounting being performed.

Which Type of Accounting Is Concerned with Providing Information to External