Question

Which of the following statements about differences between financial and managerial accounting is incorrect?

• A. Managerial accounting information is prepared primarily for martial 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 1

The correct option is A Managerial accounting information is prepared primarily for martial parties such as stockholders and creditors; financial accounting is directed at internal users

Managerial accounting is for internal users like the owner, directors

whereas

Financial accounting is for external users like shareholders, creditors, bank etc.

Therefore, Only Option A is incorrect and the remaining are correct.