Which type of accounting is primarily concerned with recording and reporting a company's investments, such as stocks, bonds, and other financial assets?

• A. Managerial accounting
• B. Cost accounting
• C. Financial accounting
• D. Tax accounting

Answer: (C)

Verified step by step guidance

1. Understand the different types of accounting: Managerial accounting focuses on internal decision-making, Cost accounting deals with cost analysis, Tax accounting is concerned with tax compliance, and Financial accounting is focused on recording and reporting financial transactions.
2. Recognize that investments such as stocks, bonds, and other financial assets are part of a company's financial transactions and are reported in financial statements.
3. Learn that Financial accounting is primarily concerned with preparing financial statements, such as the balance sheet, income statement, and cash flow statement, which include details about investments.
4. Understand that Financial accounting ensures transparency and provides information to external stakeholders, such as investors, creditors, and regulatory agencies, regarding the company's financial position.
5. Conclude that Financial accounting is the type of accounting primarily concerned with recording and reporting a company's investments, as it deals with the accurate representation of financial assets in the company's financial statements.