Which of the following statements are correct about financial accounting?

The choice highlighting that financial accounting is externally focused accurately reflects the nature and purpose of financial accounting in an organizational context. Financial accounting primarily serves external stakeholders such as investors, creditors, regulators, and tax authorities by providing them with a clear and standardized picture of the company's financial health.

This focus on external users is critical because financial reports, including the balance sheet, income statement, and cash flow statement, are designed to convey the organization's financial performance and position to parties outside the company. These external stakeholders use this information to make informed decisions, such as investing in the company or providing loans.

In contrast, other statements may touch on various aspects but do not capture the primary focus of financial accounting. While management needs are considered within internal cost accounting or managerial accounting, financial accounting is mainly concerned with meeting external reporting requirements. Additionally, while financial accounting must adhere to a country's laws and regulations, its essential function is not compliance alone—rather, it aims to provide a clear overview to external parties. The internally focused aspect is more characteristic of managerial accounting, which concentrates on providing information for internal decision-making.