Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting.
Exercise 19-1
Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting. Identify each statement as true or false.
1. Financial accounting focuses on providing information to internal users.
2. Analyzing cost-volume-profit relationships is part of managerial accounting.
3. Preparation of budgets is part of financial accounting.
4. Managerial accounting applies only to merchandising and manufacturing companies.
5. Both managerial accounting and financial accounting deal with many of the same economic events.
6. Managerial accounting reports are prepared only quarterly and annually.
7. Financial accounting reports are general-purpose reports.
8. Managerial accounting reports pertain to subunits of the business.
9. Managerial accounting reports must comply with generally accepted accounting principles.
10. Although managerial accountants are expected to behave ethically, there is no code of ethical standards for managerial accountants.
Homework Answers
- FALSE, financial accounting focuses on providing information to external users.
- TRUE, Cost volume profit relationship is part of managerial accounting.
- FALSE, budget preparation is part of managerial accounting.
- FALSE, Managerial Accounting applies to all types of business organizations which include merchandising, manufacturing, service and all forms of business organizations.
- FALSE, Managerial Accounting and financial accounting does not deal with same economic event.
- FALSE, Managerial Accounting reports can be generated for any period, it can be daily, weekly, monthly, quarterly or yearly.
- TRUE, financial statements can be used by external and as well as internal users. Hence such reports are general purpose reports.
- FALSE, Managerial accounting reports pertains to the company as a whole.
- FALSE, Managerial accounting reports are not subject to reporting according to Generally Accepted Accounting Principles.
- FALSE, The Institute of Management Accountants (IMA) has developed standards of ethical professional conduct and managerial accountants are bound to it.
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Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting.
Indicate whether the following statements describe financial accounting or managerial accounting.
Take me to the textIndicate whether the following statements describe financial accounting or managerial accounting.Largely based on forecasting future sales and cash flows, calculating costs and preparing budgets.is concerned with collecting data of historical nature.Reports are very detailed and provide a wealth of information.Must follow Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) set by professional bodies.Primarily prepared for external users such as creditors and stockholders so that they can make sound financial or investment decisions.Does not...
c. Total quality management (TQM) d. Research and development, and product design I uusines 1. Just-in-time...
c. Total quality management (TQM) d. Research and development, and product design I uusines 1. Just-in-time (IT) inventory R. Sarbanes-Oxley Act (SOX) h. Global Reporting Initiative Exercises Ident E1.1 (LO 1), Justin Bleeber has prepared the following list of statements about managerial account ing, financial accounting, and the functions of management 1. Financial accounting focuses on providing information to internal users. 2. Stall positions are directly involved in the company's primary revenue generating activities 3. Preparation of budgets is part...
[A Financial accounting information and managerial accounting information have a number of distinguishing characteristics. To submit...
[A Financial accounting information and managerial accounting information have a number of distinguishing characteristics. To submit your answer, number your answer space 1 through 10 (corresponding to the numbering of the items below). For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by placing the letter "F" in the space to the left of the item and indicate those characteristics which are more closely associated with managerial accounting by placing the letter...
A Financial accounting information and managerial accounting information have a number of distinguishing characteristics. To submit...
A Financial accounting information and managerial accounting information have a number of distinguishing characteristics. To submit your answer, number your answer space 1 through 10 (corresponding to the numbering of the items below). For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by placing the letter "F" in the space to the left of the item and indicate those characteristics which are more closely associated with managerial accounting by placing the letter...
1. Managerial accounting focuses on providing historical financial information to outside users including shareholders and creditors.
1. Managerial accounting focuses on providing historical financial information to outside users including shareholders and creditors.2. Managerial accounting information must follow U.S. Generally Accepted Accounting Principles (CA AP)3. The control function is implemented to assess an organization's plan and may lead to recommendations for the future.4. The treasurer is typically in charge of all finance and accounting functions within an organization.5. The Institute of Management Accountants (IMA) provides formal guidance to help in choosing ethically acceptable courses of action
Indicate which of the following statements relate to financial accounting versus managerial accounting. 1. Must adhere...
Indicate which of the following statements relate to financial accounting versus managerial accounting. 1. Must adhere to generally accepted accounting principles. 2. Primary users are external. 3. Past results and projected future results. 4. Reports prepared after the end of an accounting period. 5. Statements contained in annual reports. 6. Reports benefit internal users. 7. Reports come in a variety of formats, designed for the decision maker. 8. Information not disseminated to the general public. 9. Communicates information about the...
Which of the following statements is true about managerial accounting?
Which of the following statements is true about managerial accounting?It pertains to a business as a whole.It provides more detailed information than financial accounting does.It must be prepared using generally accepting accounting principles.It is primarily for internal users such as stockholders and managers.
PREGUNTA 1 Managerial accounting applies to each of the following types of businesses except service firms....
PREGUNTA 1 Managerial accounting applies to each of the following types of businesses except service firms. merchandising firms. manufacturing firms. Managerial accounting applies to all types of firms. Managerial accounting information pertains to the entity as a whole and is highly aggregated. pertains to subunits of the entity and may be very detailed. is prepared only once a year. is constrained by the requirements of generally accepted accounting principles.
Write C (Cost/Managerial), F (Financial), or T (Tax) next to each of the following statements. The...
Write C (Cost/Managerial), F (Financial), or T (Tax) next to each of the following statements. The purpose of this information is to calculate taxable income. This information must follow Generally Accepted Accounting Principles. Types of information generated from this type of accounting are financial statements that were subject to audit. This information is not subject to rules and regulations on report type, format, etc. Types of information generated by this type of accounting are budgets, cost analysis, and department reports....
Managerial accounting information includes all of the following except: Multiple Choice budgets. performance evaluations for example budget-to-actual reports cost reports....
Managerial accounting information includes all of the following except: Multiple Choice budgets. performance evaluations for example budget-to-actual reports cost reports. ports. financial statements prepared in accordance with generally accepted accounting principles.
Take me to the textIndicate whether the following statements describe financial accounting or managerial accounting.Largely based on forecasting future sales and cash flows, calculating costs and preparing budgets.is concerned with collecting data of historical nature.Reports are very detailed and provide a wealth of information.Must follow Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) set by professional bodies.Primarily prepared for external users such as creditors and stockholders so that they can make sound financial or investment decisions.Does not...
c. Total quality management (TQM) d. Research and development, and product design I uusines 1. Just-in-time (IT) inventory R. Sarbanes-Oxley Act (SOX) h. Global Reporting Initiative Exercises Ident E1.1 (LO 1), Justin Bleeber has prepared the following list of statements about managerial account ing, financial accounting, and the functions of management 1. Financial accounting focuses on providing information to internal users. 2. Stall positions are directly involved in the company's primary revenue generating activities 3. Preparation of budgets is part...
[A Financial accounting information and managerial accounting information have a number of distinguishing characteristics. To submit your answer, number your answer space 1 through 10 (corresponding to the numbering of the items below). For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by placing the letter "F" in the space to the left of the item and indicate those characteristics which are more closely associated with managerial accounting by placing the letter...
A Financial accounting information and managerial accounting information have a number of distinguishing characteristics. To submit your answer, number your answer space 1 through 10 (corresponding to the numbering of the items below). For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by placing the letter "F" in the space to the left of the item and indicate those characteristics which are more closely associated with managerial accounting by placing the letter...
PREGUNTA 1 Managerial accounting applies to each of the following types of businesses except service firms. merchandising firms. manufacturing firms. Managerial accounting applies to all types of firms. Managerial accounting information pertains to the entity as a whole and is highly aggregated. pertains to subunits of the entity and may be very detailed. is prepared only once a year. is constrained by the requirements of generally accepted accounting principles.
Write C (Cost/Managerial), F (Financial), or T (Tax) next to each of the following statements. The purpose of this information is to calculate taxable income. This information must follow Generally Accepted Accounting Principles. Types of information generated from this type of accounting are financial statements that were subject to audit. This information is not subject to rules and regulations on report type, format, etc. Types of information generated by this type of accounting are budgets, cost analysis, and department reports....
Managerial accounting information includes all of the following except: Multiple Choice budgets. performance evaluations for example budget-to-actual reports cost reports. ports. financial statements prepared in accordance with generally accepted accounting principles.
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