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:

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