Which of the Following Statements About Financial Accounting Is CORRECT

question 52

Multiple Choice

Which of the following statements about financial accounting is CORRECT?

• A) Financial accounting is forward-looking.
• B) Financial accounting is focused on planning and controlling operations.
• C) Financial accounting is focused on detailed reports on parts of the company.
• D) Financial accounting is oriented towards helping investors make decisions.

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Definitions:

Fair and Accurate Credit Transactions Act

U.S. law enacted to enhance consumer protection and reduce the risk of fraud and identity theft by ensuring accurate credit information.

Statute of Frauds

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

Primary Objective Test

A legal standard used to determine the main purpose of a contract or transaction, often applied in tax law to ascertain the primary reason behind a taxpayer's actions.

Main Purpose Test

In contract law, a test applied by the court to determine the real purpose of a guaranty contract.