Which of the following statements is true?
A) External and internal users of accounting information have exactly the same information needs.
B) Financial accounting is less flexible than managerial accounting.
C) Managerial accounting provides the best information to external users.
D) Managerial accounting emphasises the organisation as a whole more than financial accounting.

Question

Quizplus · Accepted Answer

Financial accounting follows strict rules and regulations set by accounting bodies such as GAAP and IFRS, while managerial accounting is more flexible and can be tailored to meet the needs of the organization. Therefore, financial accounting is less flexible than managerial accounting. The other options are false.

Which of the Following Statements Is True