Financial accounting information is determined objectively and is verifiable, whereas management accounting usually represents subjective estimates of future events.

Question

Quizplus · Accepted Answer

Financial accounting follows strict accounting standards and principles and is based on historical data, which makes the information objective and verifiable. On the other hand, management accounting involves making estimates and assumptions about future events, such as future sales or costs, which are subjective in nature.

Financial Accounting Information Is Determined Objectively and Is Verifiable, Whereas