Question

Brief Exercise 19-1.

Complete the following comparison table between managerial and financial accounting.

Answer 1

	Financial accounting	Managerial accounting
Primary users of report	External users	Internal users
Types of reports	Financials statements	Internal reports
Frequency of report	Quarterly and annually	As frequently as needed
Purpose of reports	General purpose	Relevance to decision
Content of reports	Generally accepted accounting principle	Special purpose information for specific decision
Verification process	Annual audit by Certified public accounts	No Independent audits