The correct answer is D.
Financial accounting is a system of recording and summarizing financial transactions that are used to measure, analyze, and report a company’s financial performance. The purpose of financial accounting is to provide information for decision-making, such as assessing the profitability and financial position of the firm.
Option A is incorrect because financial accounting does not provide information for fixing prices. Prices are set by the market, not by financial accounting.
Option B is incorrect because financial accounting does not provide information for controlling costs. Cost control is a management function, not a financial accounting function.
Option C is incorrect because financial accounting does not provide information for locating factors leading to wastages and losses. This information is typically provided by internal auditing.
In conclusion, the purpose of financial accounting is to provide information for assessing the profitability and financial position of the firm.