Which of the following statements correctly distinguishes between financial and management accounting?
A) Management accounting reports on the whole organisation.
B) Financial accounting is oriented toward the future.
C) Financial accounting is primarily concerned with providing information for internal users.
D) Management accounting is oriented more toward the planning and control aspects of management.

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with providing information for external users, such as investors and creditors, while management accounting provides information for internal users, such as managers and employees. Management accounting is focused on the planning and control aspects of management, while financial accounting is oriented more toward the reporting of past financial performance.

Which of the Following Statements Correctly Distinguishes Between Financial and Management