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1. Which of the following best defines managerial
accounting?
a. The process of recording and reporting financial
information for external stakeholders.
b. The process of analyzing financial information to make
strategic business decisions.
c. The process of preparing financial statements for tax
purposes.
d. The process of ensuring compliance with accounting
standards.
Answer: b. The process of analyzing financial information
to make strategic business decisions.
Rationale: Managerial accounting focuses on providing
information and analysis to internal stakeholders for
decision-making purposes.
2. Which of the following is NOT a characteristic of
managerial accounting information?
a. Historical in nature.
b. Focused on future outcomes.
c. Pertinent to the decision-making needs of managers.
d. Provided to external stakeholders.
Answer: d. Provided to external stakeholders.
Rationale: Managerial accounting information is primarily
used by internal stakeholders for decision-making
purposes.
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