Managerial accounting focuses on providing historical financial information to outside users including shareholders and creditors.

Question

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Managerial accounting is focused on providing financial information to internal users within an organization, such as managers and decision-makers, to help them make informed business decisions. This includes providing current and future-oriented information, as opposed to solely historical data. Shareholders and creditors would be considered external users, and their needs would be addressed through financial accounting.

Managerial Accounting Focuses on Providing Historical Financial Information to Outside