Question

The field of accounting that serves external users of financial statements in decision making process is known as __________ .

• A. financial accounting
• B. human resource accounting
• C. social responsibility accounting
• D. management accounting

Answer 1

The correct option is A financial accounting

Financial Accounting provides the basic information for preparation of financial statement of any business. Financial Statements are being analysed by all the users of the business i.e. internal as well as external user. External users i.e. money lenders or investors may take decision about their money invested in the business based on the financial statements.