Which of the following statements about financial accounting is true?

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with providing financial information to external users, such as investors, creditors, and regulators. This information is used to make decisions about whether to invest in or lend to a company, as well as to evaluate the company's financial health and compliance with regulations.

Option B is incorrect because internal accounting is concerned with providing information to managers within the organization, rather than external users. Option C is incorrect because this describes management accounting, which is a separate discipline from financial accounting. Option D is incorrect because budgeting is a component of management accounting, rather than financial accounting.

Which of the Following Statements About Financial Accounting Is True