Which of the following statements is true about managerial accounting?

Question

A, It pertains to a business as a whole.

B, It provides more detailed information than financial accounting does.

C, It must be prepared using generally accepting accounting principles.

D, It is primarily for internal users such as stockholders and managers.

[su_box title="♦ Relevant knowledge" box_color="#2d6ff7" radius="1"]Managerial accounting, which is closely linked to, and commonly referred to as cost-accounting, is the method that management can use to define how they measure, assess, communicate information in relation to the company's objectives. The management accounting process is generally more precise than financial accounting, which gives the broad view of the financial health of an organization.

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lyytutoria · Accepted Answer

Option D: Managerial accounting serves primarily to INTERNAL users such as stockholders and managers.

Managerial accounting assists in the decision-making process. This includes processes such as budgeting, etc. For such accounting, GAAP is not required.

Sarah Taylor · Answer

Option 4: Managerial accounting serves primarily to INTERNAL users such as stockholders and managers.

Managerial accounting assists in the decision-making process. This includes processes such as budgeting, etc. For such accounting, GAAP is not required.

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Which of the following statements is true about managerial accounting?