Which of the following phrases is most identified with managerial accounting?
A. Communicates accounting information to users like creditors and investors, according to accepted methods under the Financial Accounting Standards Board.
B. Communicates accounting information mostly externally from an organization to provide information about a company's financial health.
C. Communicates accounting information within an organization to make appropriate internal decisions about financial issues.
D. Communicates accounting information that assists individuals in making informed decisions about businesses and other organizations.
Answer (2)
Managerial accounting focuses on providing internal stakeholders with relevant financial information for decision-making purposes. It differs from financial accounting, which targets external entities. This specialization allows managers to tailor information to suit organizational objectives. ;
The most identifying phrase for managerial accounting is that it communicates accounting information within an organization to make appropriate internal decisions about financial issues. This distinguishes it from financial accounting, which focuses on external reporting. Thus, the correct answer is C.
;
