Which Type of Accounting Information Is Intended to Satisfy the Needs

question 142

Multiple Choice

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

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

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Definitions:

Economic Profit

The net difference in a company's total earnings and all its costs, encompassing both overt and hidden expenses.

Depreciating Capital

Assets that lose value over time due to use, wear and tear, or technological obsolescence, impacting a firm's financial statements and tax liabilities.

Inkjet Printer Industry

The Inkjet Printer Industry encompasses companies and technologies involved in the production and sale of printers that deposit ink onto paper via small jets.

Normal Rate Of Return

The standard profit that capital owners can expect to make in a safe investment, typically considered the risk-free rate of return.