CIMA BA2 · Chapter 1 · Question 1 of 12
Which of the following statements correctly distinguishes management accounting from financial accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Management accounting information is prepared mainly for internal users and has no legally prescribed format
Explanation
Management accounting serves managers inside the organisation, so its content, format and frequency are chosen to suit their needs and are not set by law or accounting standards. Financial accounting produces general purpose statements for external users and must comply with company law and IFRS Standards. Management accounting is often forward-looking (budgets, forecasts), not purely historical.
More The context of management accounting MCQs
- Q3Which of the following decisions is an example of OPERATIONAL planning and control?
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- Q5Which of the following best describes the main focus of cost accounting?
- Q6The Global Management Accounting Principles set out four principles for effective management accounting. Which of the following is NOT one…
- Q7The manager of a division is responsible for its revenues, its costs and decisions about the non-current assets it uses. What type of…