Question

The role(s) of financial accounting include to: a. Verify whether the company has applied the accounting standards and principles fairly and consistently. b. Create demand for periodic reporting of relevant and representationally faithful financial statements. c. Identify, measure, record, and report relevant and reliable financial information about companies. d. All of the choices are roles of financial accounting.

Answer 1

Answer:

c. Identify, measure, record, and report relevant and reliable financial information about companies.

Explanation:

Financial Accounting is the entire process of :

• Identifying the business financial transactions
• Measuring the business financial transactions in terms of money
• Record the business financial transactions in primary record books, i.e Journal
• Classify the business transactions in ledger books
• Summarise the business transactions records in final accounts; by trading, P & L a/c, balance sheet, trial balance.
• Interpret & analyse the business final statements.
• Communicate (report) crucial information to internal & external business stakeholders.

So, this entire procedure is a process of 'Financial Accounting'. Accounting standards & principles consistency, periodic revelation of financial statements - are an implicit part of the procedural process.