Which of the Following Is a Key Difference Between Financial

question 83

Multiple Choice

Which of the following is a key difference between financial accounting and management accounting?

• A) Financial accounting is concerned with preparing cost analyses, whereas management accounting is concerned with creating reports.
• B) Financial accounting considers such aspects as profitability, whereas management accounting does not consider profitability.
• C) Financial accounting creates information for outsiders, whereas management accounting is for insiders.
• D) Management accounting is based on historical data, whereas financial accounting is based on real time data.
• E) Accounting knowledge is crucial to perform management accounting, whereas limited accounting knowledge is sufficient for financial accounting.

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Definitions:

Behavior

refers to the actions or reactions of an individual or system in response to external or internal stimuli.

Emotion

A complex psychological state involving an organism's physiological response, subjective experience, and expressive behavior.

Thought

Thought encompasses the mental processes of perception, cognition, and reasoning that the mind engages in to interpret and interact with the world.

Occupational Success

The achievement of desired career outcomes, often measured by advancements, recognition, and satisfaction in one's professional life.