An important difference between financial accounting and management accounting is that:

Question $3$Answer

a$.$

The structure of management accounting reports cannot be changed whereas the structure of financial accounting reports can be changed.

b$.$

Financial accounting does not have a prescribed format whereas management accounting has a prescribed format.

c$.$

Financial accounting focuses on the past and management accounting focuses on the future.

d$.$

Financial accounting relates to the preparation of information for internal users and management accounting focuses on the preparation of information for external users.

e$.$

There is no difference between financial accounting and management accounting.