Which of the following phrases is most identified with managerial accounting?
A. Communicates accounting information within an organization to make appropriate internal decisions about financial issues.
B. Communicates accounting information to users like creditors and investors, according to accepted methods under the Financial Accounting Standards Board.
C. Communicates accounting information mostly externally from an organization to provide information about a company's financial health.
D. Communicates accounting information that assists individuals in making informed decisions about businesses and other organizations.
Answer (2)
The chosen option for managerial accounting is: "Communicates accounting information within an organization to make appropriate internal decisions about financial issues." This highlights its emphasis on internal decision-making within organizations. Managerial accounting provides vital, internal financial information that informs management decisions.
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Managerial accounting provides internal financial information that helps management make informed decisions. It is distinct from financial accounting, which is aimed at external stakeholders. Thus, the most appropriate phrase identifies its role in internal decision-making processes. ;
