Answer to Question #107304 in Law for KEANU

Question

which one of the following statements regarding financial accounting and management accounting is incorrect.

(1) Management accounting provide financial information for specific purposes.
(2) financial accounting is governed by the international financial reporting standards (IFRS), which ensures the comparability of financial statements between entities.
(3) Managers use the financial information provided by financial accounting in their decision making, which leads to the achievement of the objectives of the entity.
(4) Financial accounting is concerned with the recording of transactions and the preparation of financial statement for the entity as a whole.
(5) Financial accounting is concerned with the provision of financial information to mainly external parties, while management accounting is concerned with the provision of financial information to people within the entity.

Answer 1

3) Managers use the financial information provided by financial accounting in their decision making, which leads to the achievement of the objectives of the entity.