📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      The primary objective of financial accounting is

      to:
      A Assist the management in planning and control. Correct Answer Incorrect Answer
      B Provide information to external users for decision-making. Correct Answer Incorrect Answer
      C Calculate the amount of tax liability. Correct Answer Incorrect Answer
      D Record day-to-day business transactions. Correct Answer Incorrect Answer
      E Determine the market value of the business. Correct Answer Incorrect Answer

      Solution

      While management uses accounting data, the primary purpose of financial accounting is to communicate the financial position and performance to external stakeholders like investors, creditors, and regulators.

      Practice Next
      More Forming base to Accounts Questions
      ask-question