Section A

A municipal water treatment plant utilizes both financial accounting and management accounting systems.

Which of the following statements correctly distinguishes between the two?

Financial accounting is primarily for internal managers, while management accounting is for external stakeholders.

Management accounting focuses on future decisions, while financial accounting focuses on historical reporting.

Financial accounting formats are entirely flexible, whereas management accounting formats are strictly regulated by law.

Management accounting only includes financial metrics, whereas financial accounting includes non-financial metrics.