Which of the following types of accounting best relates to prioritizing stakeholders' needs and interests?

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

Answer: (A)

Verified step by step guidance

1. Understand the concept of social accounting: Social accounting focuses on the impact of an organization's activities on society and the environment, prioritizing stakeholders' needs and interests beyond financial metrics.
2. Compare social accounting with cost accounting: Cost accounting deals with tracking, analyzing, and controlling costs within an organization, which is primarily internal and does not prioritize external stakeholders' needs.
3. Compare social accounting with financial accounting: Financial accounting is concerned with preparing financial statements for external users, such as investors and creditors, but it does not specifically address broader societal or environmental concerns.
4. Compare social accounting with tax accounting: Tax accounting focuses on compliance with tax laws and regulations, ensuring accurate reporting for tax purposes, which is not directly related to prioritizing stakeholders' broader needs.
5. Conclude that social accounting is the type of accounting that best relates to prioritizing stakeholders' needs and interests, as it considers the social and environmental impact of an organization's actions.