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Which of the following statements is most accurate?

a. accounting and finance are not related.
b. financial managers keep the books for a firm.
c. financial managers need to understand accounting.
d. non-profit organizations must choose between accounting and finance.

User Trevir
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1 Answer

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Final answer:

The most accurate statement is that financial managers need to understand accounting, which is vital for overseeing a company's financial health and strategic planning.

Step-by-step explanation:

Financial managers play a crucial role in a firm by overseeing the financial health of the company. They are responsible for financial planning, analyzing a company's financial strengths and weaknesses, and proposing strategic directions. As the company grows and its strategy becomes more set, the importance of interpersonal knowledge of managers decreases because more information becomes available about a firm's products, revenues, costs, and profits. This accessible information facilitates the influx of capital from outside investors such as bondholders and shareholders, who may not personally know the managers but have confidence in the business due to the available financial data.

User Woutvdd
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