ACCA BT · Chapter 5 · Question 1 of 10
Which of the following is the main purpose of financial accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) To record transactions and produce financial statements for external users
Explanation
Financial accounting records the organisation's transactions and summarises them in financial statements, mainly for external users such as shareholders, lenders and tax authorities. Detailed costing for internal decisions is management accounting, managing cash and borrowing is the treasury function, and strategy-setting is the role of the board.
More The role of accounting and the finance function MCQs
- Q3Which of the following activities is most likely to be carried out by an organisation's treasury function?
- Q4Which of the following best describes the role of the management accountant in the 'control' stage of the management process?
- Q5Which of the following systems is used to record routine, day-to-day business transactions such as sales and purchases?
- Q6Information for decision-making should have certain qualities. Which of the following is the best example of 'relevance'?
- Q7The accounting function interacts with other parts of the organisation. Which of the following is most likely to require information from…