The Basic Difference Between Managerial Accounting and Financial Accounting Is

question 22

Multiple Choice

The basic difference between managerial accounting and financial accounting is that:

• A) the financial accounting system relies on accounting information whereas managerial accounting does not.
• B) financial accounting relies on information gathered from sources outside the business whereas managerial accounting relies on internally generated information.
• C) financial accounting is concerned with providing information to outsiders, whereas managerial accounting is concerned with providing information to managers for their use in directing the activities of the organisation.
• D) managerial accounting information is useful to not-for-profit organisations, but financial accounting information is not.