Homework Answers
| Characteristics | Financial Accounting | Managerial Accounting |
| Types of reports produced and relevant regulations |
In financial Accounting reports are mainly considered as Statement of profit and loss, Balance sheet and Cash flow statement. It is regulated by generally accepted accounting principles which can be US GAAP or IFRS. |
Managerial accounting consists of operational reports like weekly,monthly,yearly analysis of products, functions, geographies etc. It makes use of processes and procedures which are not regulated. |
| Users of reports produced | Reports are prepared for external entities like shareholders, customers,suppliers, banks ,lenders etc. | These reports are prepared for internal parties like directors, senior managers, promoters etc. |
| One example of a typical accounting task undertaken in the area | Financial Accounting undertakes to measure financial performance,financial position and cashflow position of the entire business . | Trend Analysis carried to analyse the trend of various costs incurred and to see whether there are any unusual variances from the pattern and to report the reasons for these variances. |
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Question 4 (20 marks) Part A (10 marks) Explain the difference between financial accounting and management...
Discuss the difference between management accounting and Financial Accounting and explain how Management Accounting information can...
Discuss the difference between management accounting and Financial Accounting and explain how Management Accounting information can assist management.
QUESTION 3 (20 marks) a) Discuss the reasons for the accounting profession's adopting a code of...
QUESTION 3 (20 marks) a) Discuss the reasons for the accounting profession's adopting a code of conduct. (10 marks) b) Explain the difference between an Adverse and a Qualified audit report. (5 marks) c) Do interim reports give management opportunities to manipulate results of operations for a quarter? Explain the reason/s for your answer or give an example. (5 marks)
QUESTION 8 a) Explain the fundamental qualitative characteristics of accounting information. (5 Marks) b) Explain the...
QUESTION 8 a) Explain the fundamental qualitative characteristics of accounting information. (5 Marks) b) Explain the enhancing qualitative characteristics of accounting information. (5 Marks) c) Financial statements are the summary of the financial results of the operation of a business for a specified period of time and the financial position as at that date. What are the components of financial statements? (2.5 marks) d) Financial statements are prepared to meet the demands and aspirations of certain group of people Mention...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....
Assignment
Questions:
1.
One of the
differences between Managerial Accounting and Financial Accounting
is reporting flexibility. Financial reporting is restricted by
Generally Accepted Accounting Principles whereas reporting in
Managerial Accounting has fewer rules.
a)
Why is it
permissible to violate Generally Accepted Accounting Principles
when preparing reports used strictly by company
management?
b)
Should external
users always have the same information as internal users?
Explain.
2.
The United States
uses accounting standards developed by the Financial Accounting
Standards Board (FASB)...
Question 3 (10 marks) Introduction to management accounting You are a financial accountant at Hardware Superstore...
Question 3 (10 marks) Introduction to management accounting You are a financial accountant at Hardware Superstore Ltd. One of the trainee accountants, Ellen, is currently enrolled in two university subjects – one subject on management accounting and one subject on financial accounting. She is wondering why companies, such as Hardware Superstore Ltd, need to employ both management accountants and financial accountants. She asks you: “Why can’t companies just prepare one set of financial statements? The financial reports prepared by the...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
QUESTION 15 Match the following terms with the appropriate definition. a. Financial accounting b. Ethics C....
QUESTION 15 Match the following terms with the appropriate definition. a. Financial accounting b. Ethics C. Recordkeeping d. Internal users e. Accounting f. Certifled Public Accountant (CPA) g. Fraud triangle h. Managerial accounting I. External users 1. An information and measurement system that identifies, records and communicates relevant reliable and comparable Information about an organization's business activities. 2. The part of accounting that involves recording transactions and events, either electronically or manually. 3. Persons using accounting information who are not...
Sep 15, 148 AM Distinguish between managerial and financial accounting as to (a) primary users of...
Sep 15, 148 AM Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and (c) purpose of reports. Sep 15, What are the functions of management? Briefly explain each function. What three costs make up manufacturing costs? Briefly identify each cost. it Explain the differences between a product cost and a period cost. Sep 15, 2020 at 7:48 AM What inventory accounts are used by a manufacturer? In what financial...
Question One Distinguish between traditional management accounting and strategic management (20 marks) What do we mean...
Question One Distinguish between traditional management accounting and strategic management (20 marks) What do we mean by the term "cost" as regards to management accounting? (5 marks) (Total : 25 marks) a) accounting. b) Question Two (10 marks) Discuss the signi ficance of budgeting in any business organization. a) Distinguish between a functional organization structure and a divisionalized b) (15 marks) (Total : 25 marks) organizational structure. Question Three (13 marks) Discuss the FOUR major perspectives of the balanced scorecard...
1. It offers 5 examples of business activities or accounting reports that reflect the difference between...
1. It offers 5 examples of business activities or accounting reports that reflect the difference between financial accounting and management accounting in different aspec (purpose, focus, disclosure, etc.) and describes its importance in the performance of the company. (10 points ) Example: Financial Accounting Preparation of a report that includes the quarterly production to report the quarterly results to the parent company. It allows the preparation of quarterly reports for regulatory agencies and shareholders. Management accounting Preparation of a weekly...
QUESTION 3 (20 marks) a) Discuss the reasons for the accounting profession's adopting a code of conduct. (10 marks) b) Explain the difference between an Adverse and a Qualified audit report. (5 marks) c) Do interim reports give management opportunities to manipulate results of operations for a quarter? Explain the reason/s for your answer or give an example. (5 marks)
QUESTION 8 a) Explain the fundamental qualitative characteristics of accounting information. (5 Marks) b) Explain the enhancing qualitative characteristics of accounting information. (5 Marks) c) Financial statements are the summary of the financial results of the operation of a business for a specified period of time and the financial position as at that date. What are the components of financial statements? (2.5 marks) d) Financial statements are prepared to meet the demands and aspirations of certain group of people Mention...
Assignment
Questions:
1.
One of the
differences between Managerial Accounting and Financial Accounting
is reporting flexibility. Financial reporting is restricted by
Generally Accepted Accounting Principles whereas reporting in
Managerial Accounting has fewer rules.
a)
Why is it
permissible to violate Generally Accepted Accounting Principles
when preparing reports used strictly by company
management?
b)
Should external
users always have the same information as internal users?
Explain.
2.
The United States
uses accounting standards developed by the Financial Accounting
Standards Board (FASB)...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
QUESTION 15 Match the following terms with the appropriate definition. a. Financial accounting b. Ethics C. Recordkeeping d. Internal users e. Accounting f. Certifled Public Accountant (CPA) g. Fraud triangle h. Managerial accounting I. External users 1. An information and measurement system that identifies, records and communicates relevant reliable and comparable Information about an organization's business activities. 2. The part of accounting that involves recording transactions and events, either electronically or manually. 3. Persons using accounting information who are not...
Sep 15, 148 AM Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and (c) purpose of reports. Sep 15, What are the functions of management? Briefly explain each function. What three costs make up manufacturing costs? Briefly identify each cost. it Explain the differences between a product cost and a period cost. Sep 15, 2020 at 7:48 AM What inventory accounts are used by a manufacturer? In what financial...
Question One Distinguish between traditional management accounting and strategic management (20 marks) What do we mean by the term "cost" as regards to management accounting? (5 marks) (Total : 25 marks) a) accounting. b) Question Two (10 marks) Discuss the signi ficance of budgeting in any business organization. a) Distinguish between a functional organization structure and a divisionalized b) (15 marks) (Total : 25 marks) organizational structure. Question Three (13 marks) Discuss the FOUR major perspectives of the balanced scorecard...
1. It offers 5 examples of business activities or accounting reports that reflect the difference between financial accounting and management accounting in different aspec (purpose, focus, disclosure, etc.) and describes its importance in the performance of the company. (10 points ) Example: Financial Accounting Preparation of a report that includes the quarterly production to report the quarterly results to the parent company. It allows the preparation of quarterly reports for regulatory agencies and shareholders. Management accounting Preparation of a weekly...
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