Question

What is the primary difference in the frequency of reporting between Financial Accounting (FA) and Management Accounting (MA)?

Options:
A) Both FA and MA statements are typically published annually or semi-annually.
B) FA statements are prepared at daily, weekly, monthly intervals, while MA statements are generally published annually.
C) FA statements are prepared at daily, weekly, monthly intervals, while MA statements are typically published annually or semi-annually.
D) Both FA and MA statements are generally prepared at daily, weekly, monthly intervals.

Answer 1

The primary difference in reporting frequency between Financial Accounting (FA) and Management Accounting (MA) is that FA statements are prepared at daily, weekly, monthly intervals, while MA statements are typically published annually or semi-annually.

Step-by-step explanation:

The primary difference in the frequency of reporting between Financial Accounting (FA) and Management Accounting (MA) is that FA statements are usually prepared at daily, weekly, or monthly intervals, while MA statements are typically published annually or semi-annually. Financial Accounting focuses on reporting financial information to external stakeholders, such as investors and creditors, and therefore requires more frequent reporting to provide up-to-date information. On the other hand, Management Accounting is used for internal decision-making processes and does not need to be reported as frequently.