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Commerce · Q333

Miscellaneous in Commerce

Graduate and Post Graduate · Commerce · question 333

Q333

Which of the following statements about differences between financial and managerial accounting is incorrect?

A.
Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users
Answer
B.
Financial accounting is aggregated; managerial accounting is focused on products and departments
C.
Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past transactions and events
D.
Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar constraining factors

Answer: Option A

Solution

Answer: Option A
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