James, an accountant at Forta Company, is preparing an income statement at the end of the year. It will be included in the company's annual report to be released to the public. This is an example of the managerial accounting function at Forta.

Question

Quizplus · Accepted Answer

The preparation of an income statement for an annual report to be released to the public is an example of financial accounting, not managerial accounting. Financial accounting focuses on providing information to external users, such as investors and creditors, while managerial accounting focuses on internal decision-making.

James, an Accountant at Forta Company, Is Preparing an Income