Which of the following is true regarding the comparison of managerial to financial accounting?

Choice "d" is correct. Public companies must follow GAAP for (external) financial reporting purposes.

GAAP need not be followed for (internal) managerial accounting purposes.

Choice "a" is incorrect. Financial accounting is generally more precise.

Choice "b" is incorrect. Managerial accounting has a future focus, while financial accounting focuses

on reporting past results.

Choice "c" is incorrect. The emphasis of financial accounting is providing useful information to

financial statement users (including the characteristic of relevance), while the emphasis of

managerial accounting is providing timely information to management decision makers.