BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Managerial Accounting
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Recording
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Accounting
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Financial Accounting
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Detailed explanation-1: -External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.
Detailed explanation-2: -General-Purpose financial statements are prepared primarily for external users. They provide financial reporting information to a wide variety of users–shareholders, creditors, suppliers, employees, and regulators.
Detailed explanation-3: -The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization. This information is used by the readers of financial statements to make decisions regarding the allocation of resources.
Detailed explanation-4: -The area of accounting that focuses on the reporting of financial statements that provide useful accounting information to its external users like investors, suppliers, creditors, and the government is financial accounting.