Which of the following statements is true?
A) The border between managerial accounting and financial accounting is clearly defined
B) Managerial accounting and financial accounting are totally distinct from one another
C) There is no difference between managerial accounting and financial accounting
D) Managerial accounting and financial accounting are closely linked

Question

Quizplus · Accepted Answer

Managerial accounting and financial accounting are closely linked because both deal with financial information. However, managerial accounting is focused on providing information for internal decision-making, while financial accounting is concerned with providing information for external stakeholders. While there may be some overlap between the two areas, there is no clear border between them. Therefore, option A is incorrect. Option B and C do not accurately describe the relationship between these two areas of accounting.

Which of the Following Statements Is True