Question

Click to watch the Tell Me More Learning Objective 1 video and the answer the questions below. 1. The area of accounting that provides external users with information is called a managerial accounting b. financial accounting tax accounting. d. natural accounting 2. Which of the following is NOT a guideline of ethical conduct? dently antical decision by using your personal ethical standards of honesty and fairness b. Identify the consequences of the decision and its effect on others Make a decision that is in the best rests of the company other parties Sected are not important. d. Consider your gations and respons es to those who be affected by your decision

Answer 1

Answer to Q#1 (First question in the list): Option-(b): financial accounting Reason: For a business firm, external users of accounting information refer to those parties or entities who are not directly related to firm's management activities. Instead, they use firm's accounting data for various purpose like analysing firm's financial position for investing or operating results for calculating tax dues, etc. Option-(a): Managerial accounting is incorrect because reports generated bu managerial accounting is purely for internal users only for various decision making purpose by management. Option-(b): Financial accounting is the correct answer because it is prepared in accordance with all applicable laws of the land and complying with accounting standards in a prescribed format. It will be used by both external as well as internal users for various purposes. Option-(c): Tax accounting is incorrect because it narrows down its focus on accounting tax matters only but not preparing financial statements. Option-(d): Natural accounting is incorrect because it denotes various accounting heads in the chart of accounts used by firm in maintaining accounting records such as assets, liabilities, equity, etc.