Question

The field of Accounting that serves the internal users of financial statements in decision making process is known as ________ .

• A. Financial Accounting
• B. Human Resource Accouting
• C. Social Responsibility Accounting
• D. Management Accounting

Answer 1

The correct option is D Management Accounting

Management Accounting is an another branch of accountancy. Once the financial statements are prepared based on the financial accounting, various analysis and interpretations are done. On the basis of such analysis and interpretation, management can decide the further course of action. For example, discontinuation of any business line, productivity analysis etc.