Multiple Choice
Which of the following correctly lists the four main categories of income recognized in financial accounting?
15
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is a type of accounting primarily concerned with providing information to external users such as investors and creditors?
A
Cost Accounting
B
Managerial Accounting
C
Tax Accounting
D
Financial Accounting
Verified step by step guidance1
Understand the different types of accounting and their purposes. Cost Accounting focuses on analyzing costs within a company, Managerial Accounting provides information for internal decision-making, and Tax Accounting deals with compliance and tax-related matters.
Recognize that Financial Accounting is specifically designed to provide information to external users such as investors, creditors, and regulatory agencies.
Identify the key characteristics of Financial Accounting, such as the preparation of financial statements (e.g., income statement, balance sheet, and cash flow statement) that adhere to standardized principles like GAAP or IFRS.
Compare the purpose of Financial Accounting with the other types of accounting listed in the question to confirm that it aligns with the needs of external users.
Conclude that the correct answer is Financial Accounting, as it is the type of accounting primarily concerned with providing information to external users such as investors and creditors.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations