Question

The nature of financial accounting is ________.

• A. Historical
• B. Forward looking
• C. Analytical
• D. Social

Answer 1

The correct option is A Historical

Financial accounting is the system of recording, classifying and summarizing the financial information in such a way that the user can make the economic decision out of it.

Financial accounting consider only those transactions which are of historic nature i,e the transactions which are already taken place.Futuristic transactions are of no value in financial accounting, not of any importance.