Management accounting differs from financial accounting in that financial accounting is:

Option (B)  >>>>>>>>>  Primarily concerned with external financial reporting.

B

Financial Accounting is concerned with providing information to stockholders, creditors, and others who are outside an organization.

Managerial accounting provides the essential data with which organizations are actually run.

(B) - There are7 key differences between managerial & financial accounting:

1. Financial accounting reports are prepared for external users. Managerial accounting reports are prepared for internal users.

2. Financial accounting summarizes past transactions. Managerial accounting has a strong emphasis on the future.

3. Financial accounting data must be objective & verifiable. Managerial accounting data must be relevant for the decision at hand, even if it's not completely objective & verifiable.

4. Financial accounting focuses on precision. Managerial accounting aids decision makers by providing good estimates as soon as possible rather than waiting for precise data at some later time.

5. Financial accounting is concerned with reporting for a company as a whole. Managerial accounting focuses on segments of a company such as product lines, sales territories, divisions & departments.

6. Financial accounting must conform to generally accepted accounting principles (GAAP). Managerial accounting isn't bound by GAAP.

7. Financial accounting is mandatory because outside parties such as the Securities & Exchange Commission (S.E.C.) & tax authorities require periodic financial statements. Managerial accounting is not mandatory.

The correct option is (B)

B

the correct answer is letter B. All options except letter B correctly pertains to management accounting.

B.....................................................................................

Option B

Answer B

B

Correct answer is  (B), Yes its primary concern is preparing which financial statements which are mostly used for external purposes and users.

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