According to the IMA, the primary purpose of managerial accounting is to provide current and potential investors and creditors with the information needed to make intelligent investment and lending decisions.

Question

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While managerial accounting may provide some information relevant to investment and lending decisions, its primary purpose is to provide internal decision-making support for managers within an organization. The primary purpose of financial accounting is to provide information for external stakeholders, including investors and creditors.

According to the IMA, the Primary Purpose of Managerial Accounting