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How does the financial manager's work differ from the accountant's?
AThe manager collects and presents the financial data
BThe manager uses the data to make financial decisions
CThe manager audits the data for outside shareholders
DThe manager files the data with the tax authorities
Answer & Solution
Correct answer: B. The manager uses the data to make financial decisions
1. Financial management is closely related to accounting, and in most firms both report to the vice president of finance or the chief financial officer.
2. The accountant's main function is to collect and present financial data.
3. Financial managers take those statements and other accountant-prepared information and use them to make financial decisions.
4. They focus on cash flows, the inflows and outflows of cash, planning and monitoring them so cash is available when needed.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.1 The Role of Finance and the Financial Manager_
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