The Primary Objective of Managerial Accounting Is

question 35

Multiple Choice

The primary objective of managerial accounting is

• A) to provide stockholders and potential investors with useful information for decision making.
• B) to provide banks and other creditors with information useful in making credit decisions.
• C) to provide management with information useful for planning and control of operations.
• D) to provide the Internal Revenue Service with information about taxable income.

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Definitions:

Investment Banking Firms

Financial institutions that provide a range of services including underwriting, facilitating mergers and acquisitions, and acting as financial advisors for corporate clients.

Underwriters

Professionals who evaluate and assume the risk of another party's venture, often seen in insurance and finance, determining policy terms and premium prices.

Brokerage Houses

Financial institutions that facilitate the buying and selling of financial securities between a buyer and a seller.

Securities Exchange Act

A United States law that governs the trading of securities, such as stocks and bonds, to protect investors from fraud.