Accountancy Readiness Test 1 Practice

Managerial accounting centers on information for internal decision making, planning, and control. Because it supports managers in planning for what’s next, the data are typically forward-looking—budgets, forecasts, and cost projections help guide future actions. That’s why the statement that it deals with the future is true. In contrast, following GAAP and producing reports for external users describe financial accounting, not managerial accounting, and timeliness is important for decision support, not unnecessary delay.