Managerial accounting reports and information are used by external users and financial accounting by internal users. true or false

Question

Business

Nicolas Ellison

25 October, 15:49

Managerial accounting reports and information are used by external users and financial accounting by internal users. true or false

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Answers (1)

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Erin Bolton · Answer 1

False

Explanation:

Information from Management accounting is only used for the internal decision making and it is not required by law to issue these reports to external Stakeholders of the company. On the other hand information from Financial accounting is used by the internal and external stakeholder and it is required by law to issue the financial reports to them.