Purpose of financial accounting is

A. communicating company position to investors

B. helping managers make decisions

C. future oriented

D. single person orientation

Answer: Option A

Solution(By Examveda Team)

Purpose of financial accounting is communicating company position to investors. The purpose of accounting is to provide the information that is needed for sound economic decision making. The main purpose of financial accounting is to prepare financial reports that provide information about a firm's performance to external parties such as investors, creditors, and tax authorities.