Question

Managerial accounting develops reports that help internal parties effectively and efficiently run the company. O True False Question 2 1 pts The primary goal of financial accounting is to provide information to O All of these. O creditors. government regulators. potential investors

Answer 1

Answer1: True, Managerial accounting develops reports that help internal parties effectively and efficiently run the company.

This is because managerial accounting is a branch of accounting which involves a process of identifying, analysing, interpreting and communicating financial information to managers to make decisions which will help achieve business goals. It is also called as cost accounting which helps understanding various costs involved in businesses and measures to avoid them or reduce them therby helping in effecyive and efficiency running of a company.

Answer2: All of these. The primary goal of financial accouting is to provide information to reditors, government regulators and potential investors.

Financial accouting involves prepartion of finacial accounts as per accounting principles and guidelines issued by relevant authorities such as US GAAP or IFRS. The main purpose of this is to provide various stakeholders a standard format and principle for the presentation of the financial performance of the company thus enabling comparison, understanding and analysis of various companies or same company but for different years. The various stakeholders are sharholders, creditors, government authorities and potential investors. Thus primary goal of financial accounting is to provide information to creditors, government regulators and potential investors.

Answer3: True, Evaluating operations by comparing actual results to budgeted results is a part of controlling responsibilty of management.

Comparing actual with budgeted results is a process of evaluation by managers to understand the variances in costs and revenue. This enables them to identify the reasons for costs increase or decrease as well as that of revenues and take steps to prevent future unfavourable variances. Thus it is actually a part of control functionof the management and thus a controlling responsibility of management.

Answer4: Competence is the standard which requires IMA members to perform professional duties with relevant laws, regulations and technicla standards.

IMA is a professional body governing the Management accountants which has laid down certain standards to be followed by its members while performing their duties. These are competence, confidentiality, integrity and credibility.

i) Competence requires Management accountants to maintain appropriate levels of profesional leadership and expertise by continuously enhancing knowledge and skills. It also requires them to perform thier duties in accordance relevant laws, regulations and standards. Thus providing accurate, concise,clear and timely reports.

ii) Confidentiality ensures disclosure of information only to authorised individulas and when legally required.

iii) Integrity requires mitigating conflicts of interest and refraining from carrying out duties which is prejudice to ethical practices.

iv) Credibility is ensuring information provided is fair and objectively.