Asked by Farid Habibi on Jun 24, 2024
Verified
Managerial accounting emphasizes the future in addition to historical reports, whereas financial accounting:
A) emphasizes a historical perspective.
B) emphasizes timeliness.
C) emphasizes a future perspective.
D) emphasizes individual organizational units.
Managerial Accounting
An accounting practice focused on providing financial information to managers for decision-making, planning, and controlling business operations.
Historical Perspective
A viewpoint that involves looking at current events or situations in the context of historical developments.
- Grasp the basic concepts of managerial accounting.
Verified Answer
KO
Kaitlin O'ReillyJun 25, 2024
Final Answer :
A
Explanation :
Financial accounting focuses on providing historical reports of a company's financial performance and situation, whereas managerial accounting involves looking towards the future in making decisions related to budgets, costs, and investments. The given scenario involves a decision regarding a potential investment in the form of remodelling a showroom and purchasing new equipment, which is a decision that would fall under the purview of managerial accounting. However, the question specifically asks for a comparison with financial accounting, and since financial accounting is concerned with historical reports rather than future decision-making, the correct choice is A.
Learning Objectives
- Grasp the basic concepts of managerial accounting.
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