Question

Condensed financial data of Pharoah Company follow. Pharoah Company Comparative Balance Sheets December 31 Assets 2020 Cash $109,700 Accounts receivable 92,200 Inventory 113,000 Prepaid expenses 29.900 Investments 139,800 Equipment 265,400 Accumulated depreciation equipment (47,200) Total $702,800 2019 $47,900 32,700 101,200 25.900 113,500 242,200 (53,000) $510,400 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,800 16.100 118.700 219,400 236,800 $702,800 $67.300 17.100 149,600 174,500 101.900 $510,400 Pharoah Company

Answer 1

Answer: Managerial Accounting information is constrained by the requirements of generally accepted accounting principles.

(Managerial Accounting , also known as cost accounting or administration, stresses the inside knowledge gained by financial accounting. Management accounting reports are used to schedule, control, take decisions and assess performance. These reports are produced continuously, depending on the requirements, during the accounting and bookkeeping period. Since there are several important decisions depend on the authenticity of these reports, they are created vary carefully by the experts. Managers then study these accounts and highlight certain important points and make them into a useful information for the company.)

Managerial Accounting Usefull because of :

1. Information is for future projections and involves segments of the company
2. Nonfinancial detailed measure of defective products
3. Historical information prepared in accordance with U.S. GAAP
4. Detailed information provided monthly
5. Information is for future projections and involves a segment of the company
6. Historical information prepared in accordance with U.S. GAAP