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The following statement was made by the vice president of finance of the Electric Company: “The managers of a company should use the same information as the shareholders of the firm. When managers use the same information in guiding their internal operations as shareholders use in evaluating their investments, the managers will be aligned with the shareholders’ profit objectives.”
Required: Respond to the vice president’s statement. Be sure to discuss the major differences between managerial accounting and financial accounting, including the purpose, use, and level of detail of information.
Discussion Rubric:
Thoroughly discussed question(s) and all aspects of the discussion prompt. Length at 200 words. Sources used to provide a literature based answer rather than simple opinion. Proper grammar, spelling, and APA citation style is expected.
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