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Which one of the following statement(s) are true? A. Financial accounting is geared toward outside users...

Which one of the following statement(s) are true?

A. Financial accounting is geared toward outside users of information who are concerned w planning, control and how daily business decisions are made by the company.

B. Management accounting is geared toward internal users who are responsible for making daily business decisions while financial accounting is geared toward outside users and must conform to Generally Accepted Accounting Principles (GAAP) rules when preparing general purpose financial statements such as the balance sheet and income statement.

C. Managerial accounting is geared toward internal users who are responsible for making daily business decisions and must conform to GAAP rules when preparing internal reports to managers

D. Financial accounting is geared toward internal users who are concerned with planning and control rather than preparation of general purpose financial statements.

E. Both A and C above.

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Answer is option B

B. Management accounting is geared toward internal users who are responsible for making daily business decisions while financial accounting is geared toward outside users and must conform to Generally Accepted Accounting Principles (GAAP) rules when preparing general purpose financial statements such as the balance sheet and income statement.

Management accounting is help in planning and controlling operational activities. It is not governed by the GAAP. On the other hand, the financial information is provided by the financial accounting to the external users. The financial information should in the financial statements should be presented according the U.S. GAAP.

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