The Principal Difference Between Management Accounting and Financial Accounting Is

question 20

Multiple Choice

The principal difference between management accounting and financial accounting is that financial accounting information is:

• A)Prepared by managers.
• B)Intended primarily for use by decision makers outside the business organization.
• C)Prepared in accordance with a set of accounting principles developed by the Institute of Certified Management Accountants.
• D)Oriented toward measuring solvency rather than profitability.

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Definitions:

Balanced Die

A die engineered to ensure that each face has an equal probability of landing up when thrown.

Simple Event

An event that consists of a single outcome in the sample space of a probability experiment.

Conditional Probability

The probability of an event occurring given that another event has already occurred.

Independent Events

Two or more events in which the occurrence of one event does not affect the probability of the other events.