Multiple Choice
Which of the following is NOT a type of accounting?
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1. Introduction to Accounting
Types of Accounting
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Which type of accounting focuses primarily on providing information to internal users, such as managers, for decision-making purposes?
A
Financial accounting
B
Managerial accounting
C
Tax accounting
D
Governmental accounting
Verified step by step guidance1
Understand the different types of accounting: Financial accounting focuses on external users like investors and creditors, Managerial accounting focuses on internal users like managers, Tax accounting deals with tax compliance and planning, and Governmental accounting is used by public sector entities.
Identify the key purpose of the question: It asks which type of accounting provides information primarily to internal users for decision-making purposes.
Recall that Managerial accounting is designed to assist managers in planning, controlling, and decision-making within an organization.
Compare the options provided: Financial accounting is for external reporting, Tax accounting is for tax-related matters, and Governmental accounting is for public sector entities. Managerial accounting is the correct choice for internal decision-making.
Conclude that the correct answer is Managerial accounting, as it aligns with the purpose described in the question.
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