Which type of accounting primarily involves financial intermediaries such as banks, investment firms, and insurance companies?

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

Answer: (D)

Verified step by step guidance

1. Step 1: Begin by understanding the different types of accounting mentioned in the problem: Financial accounting, Tax accounting, Managerial accounting, and Banking accounting.
2. Step 2: Financial accounting focuses on preparing financial statements for external users such as investors, creditors, and regulatory agencies. It is not specific to financial intermediaries.
3. Step 3: Tax accounting deals with compliance and preparation of tax returns, ensuring adherence to tax laws. It is not directly related to financial intermediaries like banks or investment firms.
4. Step 4: Managerial accounting is used internally by management to make decisions, plan, and control operations. It does not primarily involve financial intermediaries.
5. Step 5: Banking accounting, as stated in the problem, is the correct answer because it specifically involves financial intermediaries such as banks, investment firms, and insurance companies.