In Which of the Following Ways Do Public Accountants Differ

question 5

Multiple Choice

In which of the following ways do public accountants differ from management accountants?

• A) Public accountants rely on data provided by top managers, whereas management accounts rely on data provided by middle and supervisory managers.
• B) Management accountants are answerable to the Securities and Exchange Commission, whereas public accountants are answerable to their own organization.
• C) Management accountants are associated with CPA firms, whereas public accountants can only be internal auditors.
• D) Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.

---

Definitions:

Human Wants

The desires and needs of individuals for goods, services, and other intangibles that lead to satisfaction.

Opportunity Cost

The toll taken for not picking the second highest preference when decisions are formulated.

Tax Cut

A reduction in the amount of taxes imposed by the government, which can affect individuals, corporations, or specific sectors.

State Expenditures

The total spending by state governments on various public services, infrastructure, education, and welfare programs.