Question

Financial statement differ from management accounting statements because____________

• A. they are mainly prepared for external users of financial information
• B. they are more complex and hard to prepare
• C. they are the summary of accounting data
• D. they are prepared on basis of actual concept

Answer 1

The correct option is A they are mainly prepared for external users of financial information

Financial statement differs from management accounting statements because they are mainly prepared for external users of financial information like shareholders, investors and government. Where the statements under management accounting are prepared for using inside the organisation. Management accounts are used by managers and people in the organisation to examine the growth of the firm and take decisions based on the report.