Question

1. Financial accounting is focused mostly on a. controlling and planning for costs b. reporting for external users such as creditors, shareholders, etc. c. performing an evaluation of profitability. d. providing information for strategic and tactical decisions. e. providing analysis to facilitate long-term decision making.

Answer 1

Ans - Reporting for external users such as creditors, shareholders etc. (Option 'b')

Financial accounting provides information which is used by various external users such as Investors, creditors, competitors and other stakeholders as it provides input for them based on which they make future decisions concerning the company. Financial accounting mainly provides summary of company results to these external users while following U.S. Generally Accepted accounting principles (U.S. GAAP) in the form of Financial statements of the organization.

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