Which of the Following Statements Is a Difference Between Financial

question 43

Multiple Choice

Which of the following statements is a difference between financial accounting and managerial accounting?

• A) Under financial accounting, reports are prepared using GAAP, whereas under managerial accounting, information that is useful to management for its decision making is not recorded using GAAP.
• B) Financial accounting focuses on providing information for internal use, whereas managerial accounting focuses on providing information for external use.
• C) Under financial accounting, reports are prepared as and when management needs them, whereas under managerial accounting, reports are prepared on a monthly basis.
• D) Financial accounting has a subjective approach, whereas managerial accounting has an objective approach.

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Definitions:

Variability

Refers to the extent to which data points in a statistical distribution or dataset differ from each other.

Range

The difference between the highest and lowest values in a set of data.

Interquartile Range

A measure of variability, defined as the difference between the upper (75th percentile) and lower (25th percentile) quartiles.

Range

Range is the difference between the highest and lowest values in a set of data, indicating the spread or variability of the dataset.