Question

1. What are the differences between the financial and managerial accounting? Discuss.
2. Financial accounting is a language used for communicating financial information that helps users make better economic decision. Discuss.
3. What is meant by the accrual basis of accounting? Discuss.
4. What are the differences between sole proprietorship, partnership, and corporations?
5. Financial accounting information should have some characteristics in order to enhance the decision making. Discuss.
6. Discuss how the choice of depreciation method can be used as a tool to increase reported profits. Give examples.
7. In absence of accounting rules, firms can adopt accounting policies and practices that portray an unrealistic view of financial situation. Critically discuss this statement.
8. What is the processing cycle of accounting records? Discuss.
9. Discuss how the provision for doubtful debt can be used as a tool to increase reported profits, or avoid taxes. Illustrate your thoughts.
10. What kinds of information provide Balance Sheet, an Income Statement, and a Cash Flow Statement. Discuss the differences between them.
11. What is the job of an accounting on daily basis?
12. Discuss how the choice of method of inventory evaluation (FIFO, AWC, and LIFO). Illustrate your points.
13. Double-entry accounting system. Critically discuss this statement.
14. Is it possible for the revaluation reserve to be paid as dividends? Why?
15. Briefly explain the difference between a partnership and a limited liability company.

16. The fundamental accounting concepts listed below form the basis of financial accounting:
    1. Accrual basis of accounting
    2. Money measurement
    3. Going concern
    4. Prudence (or Accounting conservatism)
    5. Dual aspect
    6. Matching (or expense recognition)
    7. Historical cost
    8. Business entity

Give a brief example illustrating how the concept is applied in financial accounting.

Answer 1

You have asked multiple unrelated questions in the same post. I have addressed the first one. Please post the balance questions separately one by one.

What are the differences between the financial and managerial accounting? Discuss.

Sl. No.	Parameter	Financial Accounting	Managerial Accounting
1.	Users	External, public users like shareholders, creditors, regulators etc.	Meant for internal users such as management, employees
2.	Nature of information	Generally puts together the data and information that are historical in nature	Puts together statements that are forward looking
3.	Compliance	Such accounting complies with GAAP and / or IFRS	No specific standard; custom made for decision making
4.	Focus	Encompasses the information and data on the entire organization	Processes the information specific to a particular case, need or requirement
5.	Coverage	Usually monthly, quarterly, half yearly or annual	Time period covered is again specific to the situation and need
6.	Accuracy	Highly accurate and precise	They are based on estimates, guesses and interpretation
7.	Content	Processes numbers, figures that talk about the the company's profitability and efficiency	Mostly concerns with bottlenecks, problems or decision making points that management need to focus upon