Multiple Choice
Which of the following best describes distributions from a traditional defined contribution plan?
22
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following types of accounting is primarily concerned with providing information to internal management for decision-making purposes?
A
Financial accounting
B
Auditing
C
Managerial accounting
D
Tax accounting
Verified step by step guidance1
Understand the different types of accounting: Financial accounting focuses on providing information to external stakeholders such as investors and creditors, auditing ensures the accuracy of financial statements, tax accounting deals with compliance with tax laws, and managerial accounting provides information to internal management for decision-making purposes.
Identify the key purpose of managerial accounting: It is designed to assist internal management in planning, controlling, and decision-making processes within the organization.
Compare the purpose of managerial accounting with the other types of accounting listed in the problem: Managerial accounting is distinct because it is internally focused, whereas financial accounting, auditing, and tax accounting are externally focused.
Recognize that the correct answer is managerial accounting, as it aligns with the description of providing information to internal management for decision-making purposes.
Conclude that understanding the purpose of each type of accounting is essential for distinguishing their roles and applications in business contexts.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations