Indicate whether each statement describes financial accounting or managerial accounting.

ItemFinancial? Managerial?

The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions.

Answer $1$ Question $4$Financial AccountingManagerial Accounting

The principal users are the organization$$s managers.

Answer $2$ Question $4$Financial AccountingManagerial Accounting

The key focus is on the entity as a whole, not an individual product line or manufacturing process.

Answer $3$ Question $4$Financial AccountingManagerial Accounting

The rules and principles are very flexible.

Answer $4$ Question $4$Financial AccountingManagerial Accounting

For public companies, the information gathered is usually available after an independent audit has been completed.