Which of the Following Statements Is True of Financial Accounting

question 35

Multiple Choice

Which of the following statements is true of financial accounting?

• A) It provides information to investors needed for their investment decisions.
• B) It provides forward-looking information needed for managing and delegating operations.
• C) It focuses on detailed reports for parts of the company rather than the whole company.
• D) It focuses on planning and controlling day-to-day operations.

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Definitions:

Federal Income Taxes

Taxes levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Payroll Taxes

Taxes imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.

Net Pay

The amount paid the employee, calculated as gross pay less payroll deductions.

FICA Taxes

Taxes imposed on both employers and employees to fund Social Security and Medicare.