A Basic Difference Between Managerial Accounting and Financial Accounting Is

question 343

Multiple Choice

A basic difference between managerial accounting and financial accounting is that managerial accounting

• A) adheres to rules set by the GASB, while financial accounting uses a different group of rules set by the FASB.
• B) involves the preparation of the balance sheet and income statement while financial accounting involves the preparation of the statement of cash flows.
• C) handles recording and classifying information about transactions that have no direct financial impact on the firm, while financial accounting handles the recording and classifying of information about transactions that do have a financial impact.
• D) provides information primarily intended for managers and others inside the company, while financial accounting provides information primarily intended for people outside the organization.

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Definitions:

Atmospheric Pressure

Ambient pressure at sea level equivalent to 14.7 psia, 101.3 kPa, 1 atm, or 1.01 bar.

Psia

Pounds per square inch absolute. Measure of pressure values used in North America that factors in atmospheric pressure of 14.7 psi.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, crucial for weather patterns and breathing.

Sea Level

The average level of the surface of the ocean at any given place, used as a standard in calculating land elevation and water depth.