Management accounting and financial accounting differ in that management accounting information is prepared
A)following prescribed rules.
B)using whatever methods the company finds beneficial.
C)for shareholders.
D)to summarize the whole company with little detail.

Question

Quizplus · Accepted Answer

Management accounting information is prepared using whatever methods the company finds beneficial, whereas financial accounting information follows prescribed rules and standards set by accounting bodies. Management accounting also focuses on providing detailed information for internal decision-making purposes, whereas financial accounting is concerned with summarizing the financial performance of the company for external stakeholders such as shareholders.

Management Accounting and Financial Accounting Differ in That Management Accounting