Question

Cap.1 Dit ferentiate broadly between financial Accounting and mordigerial accounting. p.4 3 How does accounting help the capital allocation process? 2.4-5 S. Brefly explain the meaning of cocism- Ureful less in the context of financial reporting p.5 7. Chat is the likely Uimitation of general- purpose financial stalenients? p.05 9. What was the Committee on Accounting Procedure, and what, gerentang accomplishments and falings? p.9. 1 Distinguish between Opinions of the Accounting principles pards and Accounting Standards Updates. p.a/p.11 13. In what was toas it felt that the pronouncements issued by the Financial Accounting Standards Board wood care arealer weight than the opinions issued by the Accounting Pncipoo Barcis p.9 15. Distinguish between FASB Accounting Standards updates and FASB Statements of Financial Accounting concepts.p.11-12

Answer 1

19 Financial accounting is the field of accounting barcerned with the Summery, analysis and Reporting of financial transactions related to a bushers, where as Managerial accounting managers use the provisions of accounting informations in order to better inform themselves before they decicle matters within their orga- vigation Managerial accounting provides information to people within the organisation , while financial accounting & mainly for those outside & Financial accounting is Required by laro, where as managend & not. 38 Accounting helps the capital allocation process by Providing reliable, relement and timely into to managers, investors and ereditors to allow resource allocation to most effecient enterprices . It also provides measurement of efferency and financial soundness, it also provide information about the financial position of the Company, Scanned with CamScanner

5-) The Concept of decision usefulness of accounting information plays an important role in indentifying Problems for elsers of financial reports and Selection of accounting information that Users of financial information to make best deceston, The decesion Usefulness is an approach of financial Sen to the properation of financial Stachment reporting information that study the theory of muestons decision malung in order to inclerstand the nature and type of information needed, 7-) These include limitations of General purpose - francial statement - only interim reports ~) do not give an escact position - Historical losbe - impact of non- monetory factors Reggaand ignored - No precesion. que Committee on Accounting procedure (CAP) was the first personal Private sector organization that had the ask of getting accontida Standards in the united

4). An opinion is an alt authoritatine pronouncement issued by the Accounting principles board. The official opinions where gihen on various accounting Issues that required classification, and interpretabions , where os The RSA KASB Issues Accounting Standard updates to update changes to the FASB Codification scarching including non authoritative fee SEC Content, 15-) FASB {The Financial accounting Standards Board is a Private non-profit organization Standard - Sething body whose primary purpose is to establish and improve erenerally accepted accepted accounting principles within the united States is public interests The Statement of financial accounting Concepts was a document issued by the FASB Conering board financial reporting concepts. FASE is the organization les therrels down the accounting rules and guidelines. CamScanner