Which of the following types of accounting focuses primarily on providing information to internal management for decision-making purposes?

• A. Tax accounting
• B. Financial accounting
• C. Governmental accounting
• D. Managerial accounting

Answer: (D)

Verified step by step guidance

1. Understand the different types of accounting mentioned in the problem: Tax accounting, Financial accounting, Governmental accounting, and Managerial accounting.
2. Tax accounting focuses on compliance with tax laws and regulations, ensuring accurate reporting for tax purposes.
3. Financial accounting is concerned with preparing financial statements for external stakeholders, such as investors, creditors, and regulatory agencies.
4. Governmental accounting deals with accounting practices specific to public sector entities, focusing on accountability and transparency in the use of public funds.
5. Managerial accounting is designed to provide internal management with relevant financial and non-financial information to aid in decision-making, planning, and controlling operations. This aligns with the problem's focus on internal management decision-making.