Which of the Following Statements Represents a Similarity Between Financial

question 1

Multiple Choice

Which of the following statements represents a similarity between financial and managerial accounting?

• A) Both are useful in providing information for external users.
• B) Both are governed by GAAP.
• C) Both draw upon data from an organization's accounting system.
• D) Both rely heavily on published financial statements.
• E) Both are solely concerned with historical transactions.

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Definitions:

Psychological Contract

The unwritten and unspoken expectations, beliefs, and assumptions about the reciprocal obligations between employees and their employer.

Attribution

The process by which individuals explain the causes of behavior and events.

Self-Serving Bias

The tendency to explain personal success by internal causes and personal failures by external causes.

Fundamental Attribution Error

A cognitive bias where individuals attribute others' actions to their character rather than external factors.