1.

Which of the following statements about differences between financial and managerial accounting is incorrect?a) Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.b) Financial accounting is aggregated; managerial accounting is focused on products and departments.c) Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past transactions and events.d) Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar constraining factors. 

Answer»

a) Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.



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