The Primary Objective of Financial Accounting Is

question 183

Multiple Choice

The primary objective of financial accounting is

• A)To help organizations keep track of financing activities.
• B)To prepare budgets.
• C)To help an organization to keep track of its buying and selling of resources.
• D)To help an organization define its ideas, goals, and actions.
• E)To provide external reports to help users analyze an organization's activities.

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption or wear and tear of the asset.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, often assessed for financial health and performance.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets.

Intangible Assets

Non-physical assets that have value due to their intellectual or contractual rights, such as patents, trademarks, copyrights, and goodwill.