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Financial Accounting Information and Managerial Accounting Information Have a Number

Question 213

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Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and indicate those characteristics which are more closely associated with managerial accounting.

Premises:
General-purpose reports
Reports are used internally
Prepared in accordance with generally accepted accounting principles
Special purpose reports
Limited to historical cost data
Reporting standard is relevance to the decision to be made
Financial statements
Reports generally pertain to the business as a whole
Reports generally pertain to subunits
Reports issued quarterly or annually
Responses:
financial accounting
managerial accounting

Correct Answer:

General-purpose reports
Reports are used internally
Prepared in accordance with generally accepted accounting principles
Special purpose reports
Limited to historical cost data
Reporting standard is relevance to the decision to be made
Financial statements
Reports generally pertain to the business as a whole
Reports generally pertain to subunits
Reports issued quarterly or annually
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