Both financial and managerial accounting influence user's decisions and actions.

Question

Quizplus · Accepted Answer

Both financial and managerial accounting provide important information that can influence user's decisions and actions. Financial accounting focuses on reporting financial information to external stakeholders such as investors, creditors, and regulators. This information can help investors make decisions about buying or selling stocks, creditors make decisions about lending money, and regulators make decisions about enforcing financial regulations. Managerial accounting focuses on providing information to internal decision-makers, such as managers and executives, to help them make decisions about planning, budgeting, and managing operations. This information can help managers make decisions about resource allocation, product pricing, and performance evaluation, which can directly impact the success of the organization.

Both Financial and Managerial Accounting Influence User's Decisions and Actions