Answer (D) is correct.
Managerial accounting assists management decision making, planning,
and control. Financial accounting addresses accounting for an entity’s
assets, liabilities, revenues, expenses, and other elements of financial
statements. Financial statements are the primary method of
communicating to external parties information about the entity’s results
of operations, financial position, and cash flows. For general-purpose
financial statements to be useful to external parties, they must be
prepared in conformity with accounting principles that are generally
accepted in the United States. However, managerial accounting
information is primarily directed to specific internal users. Hence, it
ordinarily need not follow such guidance.