The area of accounting that provides managers inside the organization with information they need to make decisions is called:
A)Tax accounting.
B)Managerial accounting.
C)Informational accounting.
D)Financial accounting.

Question

Quizplus · Accepted Answer

Managerial accounting is specifically focused on providing information to managers within the organization to make decisions. This type of accounting looks at internal factors and data within the company and is not required to follow generally accepted accounting principles like financial accounting. Tax accounting focuses on complying with tax laws and regulations, while financial accounting provides information to external parties such as investors and creditors. There is no such thing as informational accounting.

The Area of Accounting That Provides Managers Inside the Organization