Financial and managerial accounting both provide useful information, but each has a different emphasis. Briefly distinguish between financial and managerial accounting as they relate to the 1) primary users, 2) purpose of information, and 3) focus and time dimension of the information.
What will be an ideal response?
The primary users of financial information are external, while the primary users of managerial
information are internal. Financial information helps investors and creditors make investment and credit
decisions, while managerial information assists managers and employees to plan, direct and control
operations. The focus of financial information is on the past, ensuring relevant and faithfully
representative information, while managerial information is focused on providing relevant information for
future decisions.
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A) a music studio B) a breakfast cereal company C) an accounting firm D) a building contractor
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A. the greater the significance of the end benefit of the purchase. B. when someone else pays the bill. C. the greater the total expenditure. D. when someone else shares the cost. E. the lower the total expenditure.
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Answer the following statement true (T) or false (F)