Question

Which branch of Accounting caters to information requirement of external users of financial statements?

• A. Cost Accounting
• B. Management Accounting
• C. Human Resource Accounting
• D. Financial Accounting

Answer 1

The correct option is D Financial Accounting

Financial Statements of a business are prepared on the basis of financial accounting. These financial statements are purely based on the data available in financial records. External users normally read the financial statement to have the overall view about the business.