The Primary Objective of Financial Accounting Is To

question 27

Multiple Choice

The primary objective of financial accounting is to:

• A)Serve the decision-making needs of internal users.
• B)Provide accounting information that serves external users.
• C)Monitor and control company activities.
• D)Provide information on both the costs and benefits of looking after products and services.
• E)Know what,when,and how much product to produce.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy, typically measured by GDP.

Quality of Resources

The effectiveness, efficiency, and skills of economic resources, including labor, capital, and natural resources.

Labor Productivity

An indicator of economic efficiency that assesses the quantity of goods and services generated for each labor hour.

Capital Formation

Capital Formation is the process of building up the physical and financial assets of an economy, including investments in buildings, equipment, infrastructure, and inventories.