Which type of accounting is primarily used by financial institutions to provide security and convenience to customers in managing their financial transactions?

• A. Cost Accounting
• B. Tax Accounting
• C. Managerial Accounting
• D. Banking Accounting

Answer: (D)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about the type of accounting used by financial institutions to provide security and convenience to customers in managing their financial transactions.
2. Review the options provided: Cost Accounting, Tax Accounting, Managerial Accounting, and Banking Accounting. Each type of accounting serves a specific purpose.
3. Clarify the concept of Banking Accounting: Banking Accounting is a specialized branch of accounting used by financial institutions to manage customer transactions, ensure security, and provide convenience in financial operations. It focuses on recording, analyzing, and reporting financial activities specific to banking operations.
4. Compare Banking Accounting with other options: Cost Accounting deals with cost measurement and control, Tax Accounting focuses on tax compliance and planning, and Managerial Accounting aids internal decision-making. None of these directly address the needs of financial institutions for customer transaction management.
5. Conclude that Banking Accounting is the correct answer because it aligns with the requirements of financial institutions to provide security and convenience in managing customer financial transactions.