[amp_mcq option1=”Making accounts” option2=”Management of accounts” option3=”Presentation of accounting information” option4=”Classification of accounts” correct=”option2″]
The correct answer is: B. Management of accounts
Managerial accounting is a branch of accounting that provides financial and non-financial information to managers within an organization to assist them in making better business decisions. It is concerned with the internal reporting of financial and non-financial information to managers within an organization.
The other options are incorrect because:
- A. Making accounts is not a correct definition of managerial accounting. Managerial accounting is not concerned with the creation of accounts, but rather with the use of accounts to provide information to managers.
- C. Presentation of accounting information is not a correct definition of managerial accounting. Managerial accounting is not concerned with the presentation of accounting information, but rather with the use of accounting information to make better business decisions.
- D. Classification of accounts is not a correct definition of managerial accounting. Managerial accounting is not concerned with the classification of accounts, but rather with the use of accounting information to make better business decisions.