All the Following Are Differences Between Financial and Managerial Accounting

question 57

Multiple Choice

All the following are differences between financial and managerial accounting in how accounting information is used except to

• A) plan and control company's operations.
• B) decide whether to invest in the company.
• C) evaluate borrowing capacity to determine the extent of a loan to grant.
• D) All the answer choices are correct.

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Definitions:

External User

Individuals or entities outside of a company who use its financial statements and reports for decision making, such as investors or creditors.

Internal User

Individuals within an organization, such as managers and employees, who use financial information to make decisions related to their roles.

Relevance To Decision

The importance of information in influencing or making a decision; relevant information affects the outcome of the decision-making process.

Management Function

Essential activities including planning, organizing, leading, and controlling that are performed to achieve business objectives.