Select the correct statement regarding managerial and financial accounting.
A) Users of managerial accounting information desire greater aggregation than do users of financial accounting information.
B) Both managerial and financial accounting use economic and physical data in addition to financial data.
C) Financial accounting is more highly regulated than managerial accounting.
D) Timeliness is more important in financial accounting than in managerial accounting.

Question

Quizplus · Accepted Answer

Financial accounting is highly regulated by bodies such as the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB), while managerial accounting is not subject to the same level of regulation. Therefore, choice C is correct. A is incorrect because users of financial accounting information generally desire more aggregation. B is incorrect because managerial accounting primarily uses financial data, while also incorporating non-financial data to a lesser extent. D is incorrect because timeliness is equally important in both managerial and financial accounting, although the frequency and level of detail may differ.

Select the Correct Statement Regarding Managerial and Financial Accounting