The type of accounting which reports to external parties of the organization is known as ____________?
Correct answer: C. financial accounting
- A. cost accounting
- B. decision accounting
- C. financial accounting
- D. management accounting
Explanation
Financial accounting produces general-purpose reports for external users, including shareholders, lenders and government agencies. Cost and management accounting mainly support internal planning and decisions.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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More Accounting Principles questions
An accounting which records and measures the business transactions and is followed by generally accepted accounting principles is classified as ____________?
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