Financial and management accounting information Explain one way in which the characteristics of financial and management accounting information differ
What will be an ideal response?
Financial accounting information is primarily historical in nature, while management accounting information is future directed.
Financial accounting information is general purpose information designed to serve the needs of a variety of external parties. Management accounting information is customized to the needs of a particular internal decision-maker.
The timeliness of management accounting information is critical. For financial accounting information completeness and verifiability are more important than timeliness.
Financial accounting information is prepared in accordance with generally accepted accounting principles while the nature and content of management accounting information is dictated by the nature of the decision it is intended to support.
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