Which of the following is a difference between financial accounting and managerial accounting?
A) Financial accounting is designed to meet the needs of company managers, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.
B) Financial accounting provides accounting information exclusively to government agencies, whereas managerial accounting is designed to specially meet the needs of suppliers and creditors.
C) Financial accounting provides stockholders with information about the overall financial performance of a firm, whereas managerial accounting is designed to meet the needs of company managers.
D) Financial accounting provides company accounting information for public consumption, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.

Question

Quizplus · Accepted Answer

Financial accounting provides information to external users such as stockholders, creditors, and government agencies while managerial accounting provides information to internal users such as managers and employees. Financial accounting focuses on the overall financial performance of the firm while managerial accounting is concerned with providing information for decision-making purposes to support planning, controlling and evaluating a company's operations. Therefore, choice C is the correct answer as it correctly distinguishes the difference between financial and managerial accounting.

Which of the Following Is a Difference Between Financial Accounting