BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To provide information to make informed judment and decisons
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To provide information for control purposes
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To report financial information
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To provide financial report
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Detailed explanation-1: -Managerial accounting information is aimed at helping managers within the organization make well-informed business decisions, while financial accounting is aimed at providing financial information to parties outside the organization.
Detailed explanation-2: -The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions. Its scope is quite vast and includes several business operations.
Detailed explanation-3: -What is the main objective of management accounting? To identify and analyse the result of business operations.
Detailed explanation-4: -The purpose of accounting is to provide the information that is needed for sound economic decision making. The main purpose of financial accounting is to prepare financial reports that provide information about a firm’s performance to external parties such as investors, creditors, and tax authorities.
Detailed explanation-5: -The answer is B) Reporting financial information to the shareholders.