Which of the Following Is Not Characteristic of Financial Accounting

question 25

Multiple Choice

Which of the following is not characteristic of financial accounting?

• A)Information used in financial statements is prepared in conformity with generally accepted accounting principles.
• B)The information is confidential and is intended for use only by company management.
• C)The information is used in a wide variety of business decisions.
• D)The information is developed primarily by "private accountants" that is,accountants employed by business organizations.

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Definitions:

Incentives

Benefits, rewards, or compensation offered to motivate specific actions or behaviors by individuals or organizations.

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities markets and protecting investors.

Loan Covenant

A condition in a loan agreement that the borrower must comply with, which can include financial requirements or operational actions.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presenting the results of operation and the financial condition including balance sheet, income statement, and cash flow statement.