Which of the following statements is true of managerial accounting?
A) The external stakeholders of a company are the primary users of managerial accounting.
B) Managerial accounting information is used to help managers plan and control their operations.
C) An external audit by an independent CPA is required for managerial accounting information.
D) Managerial accounting information must comply with Generally Accepted Accounting Principles.

Question

Quizplus · Accepted Answer

Managerial accounting is primarily used for internal management purposes. It provides information to managers to help them make informed decisions regarding planning, controlling, and decision-making in their operations. The external stakeholders such as investors and creditors primarily use financial accounting information. An external audit is not required for managerial accounting information, and it doesn't necessarily need to follow Generally Accepted Accounting Principles (GAAP) as it's not meant for external reporting.

Which of the Following Statements Is True of Managerial Accounting