Which of the Following Statements Is True of Financial Accounting

question 114

Multiple Choice

Which of the following statements is true of financial accounting?

• A)Under financial accounting,reports are prepared using generally accepted accounting principles.
• B)Financial accounting focuses on providing information primarily for internal use.
• C)Financial accounting includes more subjective data like possibility of competitors' reactions to a company's new sales prices.
• D)Information reported by financial accounting is not shared with those outside the company.

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Definitions:

Liability

A legal obligation or responsibility, often involving financial debts or compensation for losses or damages.

Injured Buyer

Refers to a purchaser who has suffered harm or damage due to misrepresentation, defective goods, or breach of warranty in a transaction, and may seek legal remedy.

Open and Obvious Risks

Hazards or dangers in a particular environment that are so apparent and recognizable that they should be avoided by anyone paying reasonable attention.

Duty to Warn

a legal obligation to inform others of a risk or hazard that is not immediately apparent, to prevent harm.