Managerial accounting is
A) a field of accounting that serves internal users of a company's financial information.
B) the rules and procedures governing the content and form of financial reports.
C) the field of accounting concerned with external users of a company's financial information.
D) a systematic examination of a company's accounting system to determine whether its financial reports fairly represent its operations.
E) a bookkeeping system that balances the accounting equation by recording the dual effects of every financial transaction.

Question

Quizplus · Accepted Answer

Managerial accounting is focused on providing financial information to internal users such as managers and executives to aid in decision-making, planning and control within an organization. It is not concerned with external stakeholders such as investors or creditors (choice C). The rules and procedures governing financial reports are part of financial accounting (choice B), while auditing involves the systematic examination of a company's accounting system to determine whether its financial reports are accurate (choice D). Bookkeeping refers to the recording of financial transactions (choice E).

Managerial Accounting Is