Which of the following is a difference between financial accounting and managerial accounting?
A)Financial accounting is designed to meet the needs of company managers, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.
B)Financial accounting provides accounting information exclusively to government agencies, whereas managerial accounting is designed to specially meet the needs of suppliers and creditors.
C)Financial accounting provides stockholders with information about the overall financial performance of a firm, whereas managerial accounting is designed to meet the needs of company managers.
D)Financial accounting provides company accounting information for public consumption, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.

Question

Quizplus · Accepted Answer

Financial accounting provides information to external stakeholders such as stockholders, creditors, and government agencies, while managerial accounting provides information for internal use by managers to make decisions about running the business. Financial accounting focuses on historical financial statements and transactions, while managerial accounting focuses on forecasting, budgeting, and analyzing future business scenarios.

Which of the Following Is a Difference Between Financial Accounting