Question

Financial Versus Managerial Accounting. Julia is the loan officer at a local bank that lends money to Sports Outlet, a small sporting goods retail store. She requests several quarterly financial reports on an ongoing basis to assess the store’s ability to repay the loan. Provide one example of a financial accounting report and two examples of managerial accounting reports that Julia might request.

Answer 1

Name of the financial and managerial accounting reports Julia might request are the following :

SL Number	Financial accounting reports	Managerial accounting reports
1	Balance sheet	Budget report
2	Income statement	Account receivables aging report

Explanation :

Balance sheet : It displays a business financial status at the end of a certain time period. It overview total assets, existing liabilities , total amount of available owners fund.

Income statement : It displays the net profit or net loss of the business during a particular period of time. It overview total revenue, total expenses (including operating and non operating expenses and income )

Managerial accounting reports that Julia might request :

Budget report : Budget reports are critical in measuring the performance of the firm and are generated as a whole for small business. A budget estimate is done on the previous year experience. A company's budget lists all sources of income and expenditures.

Account receivables aging report : It provides an overview of credit balances according to age or time. This report also helps identify the defaulters as well as find issues in company collection process . Company relies heavily on extending credit always giving importance to the account receivables aging reports.