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:

Sediment

Particles of organic or inorganic matter that accumulate in a loose, unconsolidated form, often deposited by water, wind, or ice.

Tectonic Forces

the forces generated by the movements of Earth's lithospheric plates, responsible for geological features and activities.

Explosive Eruption

A volcanic eruption characterized by the violent expulsion of magma, gases, and volcanic ash into the atmosphere, often with significant force.

Solidification

The process of a liquid turning into a solid, as in the cooling and crystallization of magma to form igneous rock.