What Type of Accounting Provides Information for Decision Makers Outside

question 12

Multiple Choice

What type of accounting provides information for decision makers outside the entity?

• A)Bookkeeping
• B)Managerial accounting.
• C)Internal auditing.
• D)Financial accounting.

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.

Common Stock

A type of security that represents ownership in a corporation, entitling the shareholder to a proportion of the corporation's assets and profits.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Net Income

The total revenue of a company minus its expenses, taxes, and the cost of goods sold, indicating the company's profit.