Which of the following items represents a difference between financial and managerial accounting?
A) Users of the information.
B) Flexibility of practices.
C) Timeliness and time dimension of the information reported.
D) Nature of the information.
E) All of these.

Question

Quizplus · Accepted Answer

All of the options listed represent differences between financial and managerial accounting. Financial accounting is geared towards external users like investors and creditors, follows strict guidelines (e.g., GAAP or IFRS), and focuses on historical data. Managerial accounting, on the other hand, is for internal users such as managers, is more flexible in its practices, emphasizes future projections and the timeliness of information, and deals with both financial and non-financial information.

Which of the Following Items Represents a Difference Between Financial