Both financial and managerial accounting rely on the same underlying financial data but there are major differences.Managerial Accounting:
A) emphasizes financial consequences of past activities.
B) emphasizes precision.
C) emphasizes relevance.
D) must follow GAAP.

Question

Quizplus · Accepted Answer

Managerial accounting emphasizes relevance, meaning it focuses on information that is useful for decision-making within a company. It does not need to follow GAAP (Generally Accepted Accounting Principles) and is not necessarily as precise as financial accounting. While financial accounting also relies on financial data, it is concerned with reporting past transactions and events accurately and in accordance with GAAP.

Both Financial and Managerial Accounting Rely on the Same Underlying