Which Type of Accounting Information Is Intended to Satisfy the Needs

question 70

Multiple Choice

Which type of accounting information is intended to satisfy the needs of external users of accounting information?

• A)Cost accounting
• B)Managerial accounting
• C)Tax accounting
• D)Financial accounting

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Sales

The transactions involved in selling goods or services to customers, often tracked to measure business performance.

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, and other non-physical assets acquired during a purchase.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.