Managerial accounting is different from financial accounting in that:
A) Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
B) Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
C) Managerial accounting is mainly used to set stock prices.
D) Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
E) Managerial accounting never includes nonmonetary information.

Question

Quizplus · Accepted Answer

Managerial accounting focuses on providing information for internal decision-making and, as such, often involves making projections and estimates to assist with planning and controlling activities. Financial accounting, on the other hand, is primarily concerned with the preparation of financial statements for external stakeholders and focuses on historical facts and figures with a minimum of predictions.

Managerial Accounting Is Different from Financial Accounting in That