A Basic Difference Between Managerial Accounting and Financial Accounting Is

question 343

Multiple Choice

A basic difference between managerial accounting and financial accounting is that managerial accounting

• A) adheres to rules set by the GASB, while financial accounting uses a different group of rules set by the FASB.
• B) involves the preparation of the balance sheet and income statement while financial accounting involves the preparation of the statement of cash flows.
• C) handles recording and classifying information about transactions that have no direct financial impact on the firm, while financial accounting handles the recording and classifying of information about transactions that do have a financial impact.
• D) provides information primarily intended for managers and others inside the company, while financial accounting provides information primarily intended for people outside the organization.

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Definitions:

FSH

Follicle-stimulating hormone, a gonadotropic hormone produced by the anterior pituitary gland that promotes the growth of ovarian follicles in females and spermatogenesis in males.

Pubic Hair

Body hair that grows on the genital area after reaching puberty.

DHEA

Dehydroepiandrosterone, a hormone produced by the adrenal glands, involved in the production of sex hormones and associated with aging and health.

Process Information

The act of taking in, interpreting, and understanding information through cognitive processes.