Question

Brief Exercise 14-01

Complete the following comparison table between managerial and financial accounting.

		Financial Accounting		Managerial Accounting
Primary users of reports		select an option Financial StatementsAs Frequently as NeededInternal UsersRelevance to DecisionsAnnual Audit by Certified Public AccountantGeneral-PurposeNo Independent AuditsExternal UsersInternal ReportsSpecial-Purpose Information for Specific DecisionsQuarterly and AnnuallyGenerally Accepted Accounting Principles		select an option External UsersRelevance to DecisionsNo Independent AuditsFinancial StatementsQuarterly and AnnuallyAs Frequently as NeededAnnual Audit by Certified Public AccountantGeneral-PurposeGenerally Accepted Accounting PrinciplesInternal UsersInternal ReportsSpecial-Purpose Information for Specific Decisions
Types of reports		select an option General-PurposeAnnual Audit by Certified Public AccountantSpecial-Purpose Information for Specific DecisionsInternal UsersFinancial StatementsAs Frequently as NeededQuarterly and AnnuallyGenerally Accepted Accounting PrinciplesInternal ReportsRelevance to DecisionsNo Independent AuditsExternal Users		select an option No Independent AuditsGeneral-PurposeInternal ReportsExternal UsersAs Frequently as NeededFinancial StatementsAnnual Audit by Certified Public AccountantSpecial-Purpose Information for Specific DecisionsRelevance to DecisionsQuarterly and AnnuallyGenerally Accepted Accounting PrinciplesInternal Users
Frequency of reports		select an option Annual Audit by Certified Public AccountantNo Independent AuditsExternal UsersInternal UsersFinancial StatementsGenerally Accepted Accounting PrinciplesQuarterly and AnnuallyGeneral-PurposeInternal ReportsRelevance to DecisionsAs Frequently as NeededSpecial-Purpose Information for Specific Decisions		select an option Special-Purpose Information for Specific DecisionsInternal UsersGenerally Accepted Accounting PrinciplesQuarterly and AnnuallyGeneral-PurposeAnnual Audit by Certified Public AccountantAs Frequently as NeededInternal ReportsRelevance to DecisionsNo Independent AuditsFinancial StatementsExternal Users
Purpose of reports		select an option General-PurposeRelevance to DecisionsGenerally Accepted Accounting PrinciplesExternal UsersFinancial StatementsQuarterly and AnnuallyInternal UsersSpecial-Purpose Information for Specific DecisionsNo Independent AuditsAs Frequently as NeededAnnual Audit by Certified Public AccountantInternal Reports		select an option Internal ReportsInternal UsersExternal UsersFinancial StatementsRelevance to DecisionsAs Frequently as NeededNo Independent AuditsQuarterly and AnnuallySpecial-Purpose Information for Specific DecisionsAnnual Audit by Certified Public AccountantGeneral-PurposeGenerally Accepted Accounting Principles
Content of reports		select an option Financial StatementsAnnual Audit by Certified Public AccountantSpecial-Purpose Information for Specific DecisionsInternal UsersInternal ReportsGenerally Accepted Accounting PrinciplesAs Frequently as NeededRelevance to DecisionsNo Independent AuditsQuarterly and AnnuallyExternal UsersGeneral-Purpose		select an option As Frequently as NeededGenerally Accepted Accounting PrinciplesSpecial-Purpose Information for Specific DecisionsInternal ReportsRelevance to DecisionsAnnual Audit by Certified Public AccountantNo Independent AuditsExternal UsersFinancial StatementsQuarterly and AnnuallyGeneral-PurposeInternal Users
Verification process		select an option External UsersFinancial StatementsInternal UsersQuarterly and AnnuallyGeneral-PurposeNo Independent AuditsGenerally Accepted Accounting PrinciplesInternal ReportsAnnual Audit by Certified Public AccountantAs Frequently as NeededSpecial-Purpose Information for Specific DecisionsRelevance to Decisions		select an option Quarterly and AnnuallySpecial-Purpose Information for Specific DecisionsNo Independent AuditsGenerally Accepted Accounting PrinciplesAs Frequently as NeededAnnual Audit by Certified Public AccountantFinancial StatementsGeneral-PurposeInternal UsersInternal ReportsRelevance to DecisionsExternal Users

Answer 1

Particulars	Financial Accounting	Managerial Accounting
Primary user of reports	External Users	Internal Users
Types of report	Financial Statement	Internal Reports
Frequancy of Report	Quarterly and annually	As frequantly as needed
Purpose of report	General Purpose	Special purpose information for Specific decision
Content of report	Generally Accepted Accounting Principles	Relevant to decisions
Verification Process	Annual audit by Certificed Public Accountant	No Independent Audit