Asked by Nayda Espinoza on May 17, 2024
Verified
Management accountants are not required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.
Management Accountants
Professionals specializing in accounting who analyze financial information to advise business strategy and financial management.
Generally Accepted Accounting Principles (GAAP)
A set of rules and standards for financial reporting commonly used in the United States.
- Distinguish between managerial and financial accounting, focusing on their objectives and reporting requirements.
Verified Answer
MA
marcus alexanderMay 21, 2024
Final Answer :
True
Explanation :
Management accountants focus on providing information to internal users like management and employees, so they have more flexibility in the format and content of their reports. They are not bound by the same rules and standards as external financial reporting, which is intended for investors and regulators. However, management accountants still need to ensure their reports are accurate and useful for decision-making purposes.
Learning Objectives
- Distinguish between managerial and financial accounting, focusing on their objectives and reporting requirements.
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