BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The correct answer is false. Managerial accounting is used for internal reporting, which is useful for internal users. It is financial accounting that is concerned with external reporting, which is reported to the external users, like the investors and government.

Detailed explanation-2: -Unlike financial accounting, which is primarily concentrated on the coordination and reporting of the company’s financial transactions to outsiders (e.g., investors, lenders), managerial accounting is focused on internal reporting to aid decision-making.

Detailed explanation-3: -Managerial accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help managers make decisions within a company and to help achieve business goals.

Detailed explanation-4: -Managerial accounting is concerned with providing information to managers i.e. people inside an organization who direct and control its operations. In contrast, financial accounting is concerned with providing information to stockholders, creditors, and others who are outside an organization.

Detailed explanation-5: -Managerial accounting focuses on an organization’s internal financial processes, while financial accounting focuses on an organization’s external financial processes. Managerial accountants focus on short-term growth strategies relating to economic maintenance.