The Primary Objective of Financial Accounting Is

question 188

Multiple Choice

The primary objective of financial accounting is:

• A) To serve the decision-making needs of internal users.
• B) To provide financial statements to help external users analyze an organization's activities.
• C) To monitor and control company activities.
• D) To provide information on both the costs and benefits of looking after products and services.
• E) To know what, when, and how much to produce.

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Definitions:

Estate

All of the money and property owned by a particular person, especially at death.

Equitable Estoppel

A legal principle preventing a party from asserting a claim or right which contradicts what they previously said or agreed to by their actions.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.