Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Limited to historical cost data
A) F
B) M

Question

Quizplus · Accepted Answer

Financial accounting information is more closely associated with historical cost data, as it focuses on recording and reporting transactions that have already occurred, using historical costs to value assets and liabilities. Managerial accounting, on the other hand, often involves forward-looking information and may use a variety of costing methods beyond historical cost.

Financial Accounting Information and Managerial Accounting Information Have a Number