Asked by NAYSI RAMOS on Mar 10, 2024
Verified
What type of accounting system is part of an organisation's management information system for internal use only?
A) Financial accounting
B) Management accounting
C) Governmental accounting
D) All of the given answers
Management Accounting
Involves collecting, analyzing, and presenting financial and non-financial information to help managers make informed decisions to achieve business objectives.
Financial Accounting
The field of accounting that focuses on the preparation and reporting of financial statements for external users such as investors, creditors, and regulators.
Governmental Accounting
Accounting practices specifically designed for the public sector, focusing on accountability rather than profitability.
- Contrast management accounting with financial accounting.
Verified Answer
KB
Kelsey BrownMar 10, 2024
Final Answer :
B
Explanation :
Management accounting is used for internal purposes and is part of an organization's management information system. Financial accounting, on the other hand, is used for external reporting and involves the preparation of financial statements for investors, government agencies, and other external parties. Governmental accounting is a specialized form of accounting used by government entities.
Learning Objectives
- Contrast management accounting with financial accounting.