Which of the following statements is INCORRECT?
A) Managerial accounting is used to plan and control business operations.
B) Managerial accounting is used to report the company's financial position and results of operations to creditors and investors.
C) Managerial accounting is used to prepare budgets.
D) Managerial accounting is used to determine the cost of products and services.

Question

Quizplus · Accepted Answer

Managerial accounting is not used to report the company's financial position and results of operations to creditors and investors. That is the primary function of financial accounting. Managerial accounting is used for internal purposes, such as planning, controlling, and decision-making within the company.

Which of the Following Statements Is INCORRECT