The Basic Difference Between Management and Financial Accounting Is That

question 36

Multiple Choice

The basic difference between management and financial accounting is that:

• A) the financial accounting system relies on accounting information, whereas management accounting does not.
• B) financial accounting relies on information gathered from sources outside the business, whereas management accounting relies on internally generated information.
• C) financial accounting is concerned with providing information to outsiders, whereas management accounting is concerned with providing information to managers for their use in directing the activities of the organisation.
• D) None of the above is correct.

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Definitions:

Constant

A fixed value that does not change in mathematical equations or in the analysis of data.

Age

A measure of the time someone or something has existed, typically expressed in years.

Cause-and-Effect

A relationship where one event (the cause) leads to the occurrence of another event (the effect).

Lurking Variable

A variable that is not directly studied yet influences the relationship between the independent and dependent variables under investigation.