Financial Accounting Focuses Primarily on Reporting

question 32

Multiple Choice

Financial accounting focuses primarily on reporting:

• A)to parties outside of an organization.
• B)to parties within an organization.
• C)to an organization's board of directors.
• D)to the Vice President of Finance.
• E)on behalf of financial institutions.

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Definitions:

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).

GAAP

A set of widely adhered to accounting norms and guidelines for the preparation of financial statements, known as Generally Accepted Accounting Principles.

IFRS

International Financial Reporting Standards are global accounting norms formulated by the International Accounting Standards Board (IASB) for the preparation of public company financial reports worldwide.

Rules-Based

Rules-based refers to systems or processes that are governed by a set of explicit or predetermined rules or principles to ensure consistency and standardization.