A basic difference between managerial accounting and financial accounting is that managerial accounting

Multiple Choice

provides information primarily intended for managers and others inside the company, while financial accounting provides information primarily intended for people outside the organization.

involves the preparation of the balance sheet and income statement while financial accounting involves the preparation of the statement of cash flows.

adheres to rules set by the GASB, while financial accounting uses a different group of rules set by the FASB.

handles recording and classifying information about transactions that have no direct financial impact on the firm, while financial accounting handles the recording and classifying of information about transactions that do have a financial impact.