Select the correct statement regarding managerial and financial accounting. User

Question

Select the correct statement regarding managerial and financial accounting.

Users of managerial accounting information desire more detailed accounting reports than do users of financial accounting information.

Both managerial and financial accounting use economic and physical data in addition to financial data.

Financial accounting is less regulated than managerial accounting.

Timeliness is more important in financial accounting than in managerial accounting

Users of managerial accounting information desire more detailed accounting reports than do users of financial accounting information.

Both managerial and financial accounting use economic and physical data in addition to financial data.

Financial accounting is less regulated than managerial accounting.

Timeliness is more important in financial accounting than in managerial accounting

Explanation / Answer

Answer is D: Timeliness ia more important in financial accounting than in managerial accounting.

Main objective of financial account is to find out the financial results ( net income) and financial position ( using balance sheet) for a specified accouning period from financial data. Normally a period of one year.

Managerial accouning objective is to analyse the available financial and other data to take managerial decisions. It is not prepared annualy. Mangeres will follow and prepare managerial accouning statements when it is required by management

Financial accounting is strictly confined to financial data, It follows the accouning regulations.

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