Which of the Following Is a Use of External Audits

question 69

Multiple Choice

Which of the following is a use of external audits?

• A) Evaluating financial stability
• B) Evaluating production efficiency
• C) Evaluating sales effectiveness
• D) Identifying possible mergers or acquisitions
• E) Identifying earnings potential

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Definitions:

Financial Accounting

The field of accounting concerned with the summary, analysis, and reporting of financial transactions related to a business, to external stakeholders.

Managerial Accounting

Managerial accounting involves the provision of financial and non-financial decision-making information to managers, focusing on the internal needs of a business.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.

Nonfinancial Information

Data related to a company’s operations that is not expressed in monetary terms.