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ACCA Applied Knowledge · Management Accounting · Accounting for management

Which of the following is a feature of management accounting rather than financial accounting?

Management accounting reports can cover any period and often look forward, such as budgets and forecasts. External users, mandatory IFRS formats and regulatory filing are features of financial accounting, not management accounting, which is prepared for internal decision-making.

  1. AInformation is prepared mainly for shareholders and other external users
  2. BReports must follow IFRS Accounting Standards
  3. CReports may be produced for any period and often look at the futureCorrect
  4. DStatements must be filed with a regulatory body

Explanation

Management accounting serves internal users, has no mandatory format and can be produced at any frequency, including forecasts. The other three options describe features of financial accounting: external users, regulation by standards and statutory filing.

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