Which branch of accounting focuses on historical data to present the financial position to external users? MCQ with Answer and Explanation

Which branch of accounting focuses on historical data to present the financial position to external users?

A. Management Accounting

B. Financial Accounting

C. Cost Accounting

D. Responsibility Accounting

Answer: Option B

Solution (By JKExamLibrary)

Financial accounting records past events to prepare statements like P&L and Balance Sheet for external stakeholders (investors, creditors, government).

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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