The difference between management accounting and financial accounting is:
A) management accounting focuses on external users whereas financial accounting focuses on internal users.
B) management accounting focuses only on the control function whereas financial accounting focuses on the reporting function.
C) management accounting focuses on internal users whereas financial accounting focuses on external users.
D) management accounting focuses on the reporting function whereas financial accounting focuses on the control function.

Question

Quizplus · Accepted Answer

Management accounting is concerned with providing information to internal users such as managers and employees, whereas financial accounting is concerned with providing information to external users such as investors, creditors, and regulators. Therefore, choice C is the correct answer. The other choices are incorrect as they do not accurately characterize the differences between the two types of accounting.

The Difference Between Management Accounting and Financial Accounting Is