Financial accounting is useful for managers because:
A) The decisions of managers are influenced by how those decisions will be presented to users
B) The accounting information is used by managers for planning, decision making and control
C) Both a and b above
D) It is not useful because it is produced annually, is highly aggregated and provides no comparison to target

Question

Quizplus · Accepted Answer

Financial accounting provides valuable information for managers not only for external reporting purposes but also for internal planning, decision-making, and control. It helps managers understand how their decisions will be viewed externally and assists in the internal management of the company.

Financial Accounting Is Useful for Managers Because