Question

Managerial accounting is designed to satisfy needs of external users including creditors, investors, and governmental agencies.

Answer 1

Answer:

B) False

Explanation:

Managerial accounting is designed by management to measure its performance. It usually involves the setting of a target in form of a budget which is then compared and adjusted from time with the actual amounts achieved.

Managerial accounting is where the variances are measured whether favorable of otherwise.

Financial accounting on the other hand is the review of historical financial data that satisfy the needs of external users such as creditors, investors, and governmental agencies.

As such, the right option is B.

Answer 2

Answer:

(B) False

Explanation:

Managerial accounting, unlike financial accounting designed for external users including creditors, investors, and governmental agencies, is exclusive for the managers of an organization. It helps to provide information about accounting by analysing and communicating financial information to managers for the pursuit of an organization's goals and also helps the management and performance of controlling.