Multiple Choice
In the context of financial accounting, how does using credit instead of cash affect a consumer's financial leverage, and why?
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1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is considered a primary working area of accounting?
A
Marketing
B
Human resource management
C
Managerial accounting
D
Financial accounting
Verified step by step guidance1
Understand the question: The problem is asking about the primary working areas of accounting, and you need to identify which one is relevant to financial accounting.
Review the options provided: Marketing, Human resource management, Managerial accounting, and Financial accounting.
Clarify the concept of financial accounting: Financial accounting focuses on recording, summarizing, and reporting an organization's financial transactions to external users such as investors, creditors, and regulatory agencies.
Eliminate unrelated options: Marketing and Human resource management are not directly related to accounting. Managerial accounting, while an area of accounting, focuses on internal decision-making rather than external reporting.
Conclude that financial accounting is the correct answer because it directly aligns with the primary working area of accounting focused on external financial reporting.
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