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:

Past Ten Years

The time period stretching back from the current date to a decade ago.

Services

Intangible products that cannot be stored, touched, or seen and are consumed at the point of delivery, such as healthcare, education, and financial advising.

Present Value

The present value of a future amount of money or series of cash flows, considering a certain interest rate.

Semiannually

Semiannually means occurring twice a year, typically at six-month intervals.