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:

Networking Potential

The capacity or ability of an individual or organization to develop and utilize relationships for professional or business advantage.

Core Business Potential

The inherent capabilities or opportunities within a company's primary business areas that can be optimized for growth and profitability.

Learning Potential

The capability of individuals or organizations to acquire, apply, and adapt knowledge and skills in various contexts for improvement.