A Distinction Is Often Made Between Management Accounting and Financial

question 385

Multiple Choice

A distinction is often made between management accounting and financial accounting. Management accounting focuses on internal reporting. It measures and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. Financial accounting focuses on reporting to external parties. It measures and records business transactions and provides financial statements issued to investors, government regulators, and other interested parties. Charles T. Horngren, Cost Accounting, A Managerial Emphasis, 13^th ed.

• A) Nonargument.
• B) Argument; conclusion: Management accounting focuses on internal reporting.
• C) Argument; conclusion: A distinction is often made ... financial accounting.
• D) Argument; conclusion: It measures and records business transactions ... parties.
• E) Argument; conclusion: Financial accounting focuses on ... external parties.

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Definitions:

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how people encode, store, and retrieve information.

Intellectual Ability

The capacity to think abstractly, reason, understand complex ideas, learn quickly, and solve problems.

Intelligence Measures

Methods or tools used to assess an individual's cognitive capabilities and intellectual potential.

Language Development

The method through which young children learn to comprehend and express language in their early years.