What Involves Preparing Financial Reports That Provide Information About the Business's

question 9

Multiple Choice

What involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities?

• A) Accounting
• B) Bookkeeping
• C) Financial accounting
• D) Managerial accounting

---

Definitions:

Internal Rate

Often referring to the internal rate of return (IRR), which is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to direct production of goods or services.

Useful Life

The estimated period over which a fixed asset is expected to be useful for the purpose it was acquired.

Salvage Value

The estimated remaining valuation of an asset after its effective life period.