It is more important for financial accounting information to be comparable between firms than to be useful for managerial decision-making.

Question

Quizplus · Accepted Answer

Financial accounting information is primarily intended for external users, such as investors and creditors, who need to be able to compare the financial performance of different firms. Managerial decision-making, on the other hand, requires information that is specific to the firm and its unique circumstances.

It Is More Important for Financial Accounting Information to Be