Question

True or false: The main purpose of both financial and managerial accounting is similar in that both aim to provide relevant information to its users.

Answer 1

Answer: True

Explanation:

Even though Financial and Managerial accounting differ in the type of people who use it with Financial being used both internally and externally and Managerial being used internally, the main purpose is to provide relevant information to it's users.

Managerial accounting concerns analyzing and interpreting financial as well as other data so that the management can make informed decisions about their course of action.

Financial Accounting on the other hand provides the public with financial data on a company so that they may know whether to invest. Either way, they are both providing relevant information to users.