Financial and managerial accounting are similar in that both
A) have the same primary users.
B) produce general-purpose reports.
C) have reports that are prepared quarterly and annually.
D) deal with the economic events of an enterprise.

Question

Quizplus · Accepted Answer

Both financial and managerial accounting deal with the economic events of an enterprise. However, financial accounting focuses on providing external users with financial information through financial statements, whereas managerial accounting focuses on providing internal users with financial information to aid in decision-making and planning. Therefore, Option A and B are incorrect, as the primary users and purpose of both types of accounting differ. Option C is also incorrect, as the frequency of reports can vary depending on the company's needs.

Financial and Managerial Accounting Are Similar in That Both