Which of the following is true of managerial accounting?
A) It is used to produce tax returns and schedules.
B) It is a rule-based system intended primarily for absentee owners.
C) It is forward-looking in nature.
D) It is primarily for bankers,investors,and regulators.

Question

Quizplus · Accepted Answer

Managerial accounting is focused on providing information for internal decision making, and as such it is forward-looking in nature. Option A is incorrect because tax returns are prepared using financial accounting principles. Option B is incorrect because managerial accounting applies to all types of owners, not just absentee ones. Option D is incorrect because the primary users of managerial accounting are internal managers, not external stakeholders like bankers or regulators.

Which of the Following Is True of Managerial Accounting