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

<p><em><strong>A. More oriented toward the future. </strong></em></p> <p><em><strong>B. Primarily concerned with external financial reporting.</strong></em></p> <p><em><strong>C. Primarily concerned with non-quantitative information. </strong></em></p> <p><em><strong>D. Heavily involved with decision analysis and implementation of decisions.</strong></em></p>

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Question added by Deleted user
Date Posted: 2015/01/10
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

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

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

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.

Farah Abla
by Farah Abla , Financial Control Officer , Arab Bank plc

(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.

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is (B)

SHINU SAM JOY
by SHINU SAM JOY , Accountant , Neat and Net LLC

B

Mirasol Consulta
by Mirasol Consulta , Program Accountant , PACIFIC ARCHITEC ENGINEERING (PAE)

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

DIN BANDHU SINGH
by DIN BANDHU SINGH , Chief Accountant , ELITE TRADING ALLIANCE CO (El Seif Group of Companies)

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

Kashif Pirzada
by Kashif Pirzada , Finance Manager , Edge Global Consulting Limited

Option B

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

Answer B

AZHAR NAWAZ
by AZHAR NAWAZ , Assistant Manager Accounts , Quantum Geoservices (Pvt) Ltd

B

Sahle Michael Ayele
by Sahle Michael Ayele , Senior Fianance officier , Ministry of Agriculture

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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