The purpose of financial accounting is to provide information for ________.

A. fixing prices

B. controlling cost

C. locating factors leading to wastages and losses

D. assessing the profitability and financial position of the firm

Answer: Option D

Solution(By Examveda Team)

The purpose of financial accounting is to provide information for assessing the profitability and financial position of the firm. The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization.