Multiple Choice
Which of the following is an expressed financial power of Congress under the U.S. Constitution?
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1. Introduction to Accounting
Types of Accounting
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Which type of accounting is primarily responsible for creating budgets, analyzing financial data, and forecasting company profits?
A
Managerial Accounting
B
Tax Accounting
C
Auditing
D
Financial Accounting
Verified step by step guidance1
Understand the roles of each type of accounting mentioned in the problem: Managerial Accounting, Tax Accounting, Auditing, and Financial Accounting.
Recognize that Managerial Accounting focuses on internal decision-making, including creating budgets, analyzing financial data, and forecasting company profits.
Note that Tax Accounting deals with compliance with tax laws and preparation of tax returns, which is not related to budgeting or forecasting.
Understand that Auditing involves examining financial records to ensure accuracy and compliance, which is different from creating budgets or forecasting.
Finally, identify that Financial Accounting focuses on preparing financial statements for external users, not internal tasks like budgeting or forecasting, making Managerial Accounting the correct answer.
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