The area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making is known as
A)managerial accounting.
B)cost accounting.
C)financial accounting.
D)auditing.

Question

Quizplus · Accepted Answer

Managerial accounting is the area of accounting that deals with providing financial information and analysis to internal users such as management, executives, and employees for making business decisions. This involves the preparation of internal reports, such as budget reports, forecasts, and cost reports that help management make informed decisions. The data in these reports can aid in decision making related to pricing, investment, cost control, and performance evaluation. Therefore, Option A is the correct choice. Cost accounting focuses on tracking and analyzing costs associated with the production of goods and services. Financial accounting deals with the preparation and reporting of financial statements for external users such as investors, creditors, and regulatory authorities. Auditing involves examining and verifying financial statements and controls for accuracy and compliance with regulations.

The Area of Accounting That Involves the Preparation of Internal