Which of the Following Is a Key Difference Between Financial

question 83

Multiple Choice

Which of the following is a key difference between financial accounting and management accounting?

• A) Financial accounting is concerned with preparing cost analyses, whereas management accounting is concerned with creating reports.
• B) Financial accounting considers such aspects as profitability, whereas management accounting does not consider profitability.
• C) Financial accounting creates information for outsiders, whereas management accounting is for insiders.
• D) Management accounting is based on historical data, whereas financial accounting is based on real time data.
• E) Accounting knowledge is crucial to perform management accounting, whereas limited accounting knowledge is sufficient for financial accounting.

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