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.