purpose of preparation of financial statements
Q: he primary objective of financial accounting is Group of answer choices A. to serve the…
A: Financial Accounting means the process of recording the transaction , posting , summarising ,…
Q: What is the difference between managerial and financial accountin
A: Managerial accounting Managerial accounting is the practice of identifying, measuring, analyzing,…
Q: Identify the true statement in relation to management accounting a . There are structured standards…
A: Management accounting relates to the process of collecting, analyzing, interpretation and…
Q: The primary objective of financial reporting is to provide information . In an ethical manner. To…
A: The objective of financial reporting is to give information about financial performance and…
Q: Which of the following is not a primary function of the management accountant?a. Communicates…
A: Management accounting: Management accounting measures, analyzes and reports both financial and…
Q: Which of the following is NOT one of the definitions of Management Accounting? Select one: a. Any…
A: Management accounting is the accounting that helps the management in planning and taking better…
Q: Compare managerial accounting and financial accounting in terms of the following: • types of…
A: Solution:- Introduction:- Managerial accounting used by managers and directors to make decisions…
Q: Which of the following is a characteristic of Managerial Accounting? A) Users include investors and…
A: Managerial accounting - managerial accounting is the process of - Identification - measurement…
Q: reading the footnote to a company financial statement and management discussion & analysis is least…
A: The information related to the income and expenditure is provided in the income statement over the…
Q: Financial Accounting and Reporting, Advanced Financial Accounting and Reporting, Management…
A: The duties of a controller include assisting with the preparation of the operating budget,…
Q: Providing information about the performance and financial position of companies so that users can…
A: Financial reportingIt is the standard practice to provide the stakeholders an accurate depiction of…
Q: Please select the aspect of accounting associated with the following activities 1. analyzing and…
A: The aspect of accounting through which all accounting process is operate the aspects are identifying…
Q: Which of the following does NOT describe management accounting? A. Emphasis on the past
A: Management Accounting-: Management Accounting assists managers within a firm make judgments. Also…
Q: True (t) or False (f) ______ Financial accounting is the process of identifying, measuring,…
A: The Statement is "True (t)".
Q: Distinguish between managerial and financial accounting in terms of the key consumers of their…
A: Introduction : When a company's transactions and economic activity throughout time are recorded and…
Q: Financial accounting provides information for managers and other internal users.
A: Managerial accounting provides information for managers and other internal users.
Q: Financial performance analysis includes analysis and interpretation of financial statements in such…
A: In the world of finance financial performance analysis is an important analysis that is done so as…
Q: Distinguish between Managerial Accounting and Financial Accounting with respect to the primary…
A: The process of recording, summarising, and reporting to the public or regulators the flow of…
Q: Comparing managerial accounting and financial accounting For each of the following, indicate whether…
A:
Q: Which of the following is not a type of Management Report in QBO? Select one: a. Company Overview…
A: QBO - Quick book online is kind of software for small business for management of accounting, tax…
Q: Describe the nature and scope of management accounting?
A: Management accounting seems to be a subset of accounting that assists management in making decisions…
Q: The term management accounting is applied to the provision of accounting information for management…
A: To aid in the making of investment and credit decisions. To determine the size, timing, and risk of…
Q: Comparing managerial accounting and financial accounting Match the following terms to the…
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Q: Indicate whether the following statements are true or false:a. Managerial accounting information is…
A: Controlling (also known as cost accounting or management accounting) is the accounting department…
Q: State whether the following questions is True (T) or False (F): a) Management accounting is future…
A: Management accounting is a kind of accounting system used for the internal purpose where the…
Q: Management accounting
A: Option b is wrong because the statement is true. Management accounting helps the managers to plan…
Q: measuring, analyzing, and communicating financial nformation needed by management to plan, evaluate,…
A: Reasons along with answers are given below.
Q: Which is not a characteristic of managerial accounting information? Emphasizes the external…
A: Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing,…
Q: Which characteristic applies more to financial accounting than to managerial accounting? a.…
A: The following are applicable to managerial accounting as these are for internal use of the company.…
Q: Indicate whether each statement describes financial accounting or managerial accounting. The…
A: Financial Accounting means the process of recording the transaction , posting , summarising ,…
Q: Which of the following are characteristics of management accounting information? a) Unregulated…
A: Accounting is the process of recording and analyzing accounting information. Several branches of…
Q: Which of the following is TRUE of both financial accounting and management accounting? a. The…
A: Solution Concept Financial accounting The accounting that is done for the purpose of…
Q: Determining the cost of producing specific products or providing services and analyzing for cost…
A: The answer is stated below: Note: Answering the first three subparts as there are…
Q: what is the diference between managerial and financial accounting information?
A:
Q: “Provides input into an entity’s production and marketing decisions.” Is it not a primary function…
A: Mangement Accounting:
Q: Which of the following is the principal reason for preparing managerial accounting reports? a.GAAP…
A: Introduction: Managerial accounting reports are used for planning, regulation, decision making, and…
Q: Which of the following adequately describes Management Accounting? It is the process of identifying,…
A: Solution Concept Financial accounting The accounting that is done for the purpose of…
Q: Which of the following statements correctly distinguishes between management and financial accor A.…
A: Option A is incorrect because Both financial accounting and management accounting are future…
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- Should a managerial accounting system provide both financial and nonfinancial information? Explain.Managerial accounting produces information: to meet the needs of external users that is often focused on the future to meet the needs of investors that follows the rules of GAAPOrganizational charts _____. A. list the salaries of all employees B. outline the strategic goals of the organization C. show the structure of an organization D. help management measure financial performance
- All of the following are examples of managerial accounting activities except ________. A. preparing external financial statements in compliance with GAAP B. deciding whether or not to use automation C. making equipment repair or replacement decisions D. deciding whether or not to use automationTaylor Speedy has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. Financial accounting centers on providing information to internal users. Staff positions are directly involved in the companys primary revenue-generating activities. Preparation of budgets is part of financial accounting. Managerial accounting applies only to merchandising and manufacturing companies. Both managerial accounting and financial accounting deal with many of the same economic events.An effective managerial accounting system should track information about an organizations activities in which of the following areas? a. Development b. Marketing c. Production d. Design e. All of these.
- An important goal of a responsibility accounting framework is to help ensure which of the following? A. decision-making is made by the top executives. B. investments made by each segment are minimized. C. identification of operating segments that should be closed. D. segment and company financial goals are congruent.Management accounting: emphasizes special-purpose information relates to the company as a whole is limited to strictly cost figures is controlled by GAAPIndicate whether each statement describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions. The principal users are the organizations managers. The key focus is on the entity as a whole. The rules and principles are very flexible. The information gathered is usually available after an independent audit has been completed.
- When managerial accountants design an evaluation system that is based on criteria for which a manager is responsible, and it is structured to encourage managers to make decisions that will meet the goals of the company as well as their own personal job goals, the framework used is _______. A. a controllable factors framework B. an uncontrollable factors framework C. a strategic plan framework D. a responsibility accounting frameworkManagers in decentralized organizations make decisions relating to all of the following except_______. A. the companys stock price B. equipment purchases C. personnel D. prices to charge customersFor each of the following situations, two scenarios are described, labeled A and B. Choose which scenario is descriptive of a setting corresponding to activity-based responsibility accounting and which is descriptive of financial-based responsibility accounting. Provide a brief commentary on the differences between the two systems for each situation, addressing the possible advantages of the activity-based view over the financial-based view. Situation 1 A: The purchasing manager, receiving manager, and accounts payable manager are given joint responsibility for procurement. The charges given to the group of managers are to reduce costs of acquiring materials, decrease the time required to obtain materials from outside suppliers, and reduce the number of purchasing mistakes (e.g., wrong type of materials or the wrong quantities ordered). B: The plant manager commended the manager of the Grinding Department for increasing his departments machine utilization ratesand doing so without exceeding the departments budget. The plant manager then asked other department managers to make an effort to obtain similar efficiency improvements. Situation 2 A: Delivery mistakes had been reduced by 70 percent, saving over 40,000 per year. Furthermore, delivery time to customers had been cut by two days. According to company policy, the team responsible for the savings was given a bonus equal to 25 percent of the savings attributable to improving delivery quality. Company policy also provided a salary increase of 1 percent for every day saved in delivery time. B: Bill Johnson, manager of the Product Development Department, was pleased with his departments performance on the last quarters projects. They had managed to complete all projects under budget, virtually assuring Bill of a fat bonus, just in time to help with this years Christmas purchases. Situation 3 A: Harvey, dont worry about the fact that your department is producing at only 70 percent capacity. Increasing your output would simply pile up inventory in front of the next production department. That would be costly for the organization as a whole. Sometimes, one department must reduce its performance so that the performance of the entire organization can improve. B: Susan, I am concerned about the fact that your departments performance measures have really dropped over the past quarter. Labor usage variances are unfavorable, and I also see that your machine utilization rates are down. Now, I know you are not a bottleneck department, but I get a lot of flack when my managers efficiency ratings drop. Situation 4 A: Colby was muttering to himself. He had just received last quarters budgetary performance report. Once again, he had managed to spend more than budgeted for both materials and labor. The real question now was how to improve his performance for the next quarter. B: Great! Cycle time had been reduced and, at the same time, the number of defective products had been cut by 35 percent. Cutting the number of defects reduced production costs by more than planned. Trends were favorable for all three performance measures. Situation 5 A: Cambry was furious. An across-the-board budget cut! How can they expect me to provide the computer services required on less money? Management is convinced that costs are out of control, but I would like to know whereat least in my department! B: After a careful study of the Accounts Payable Department, it was discovered that 80 percent of an accounts payable clerks time was spent resolving discrepancies between the purchase order, receiving document, and the suppliers invoice. Other activities such as recording and preparing checks consumed only 20 percent of a clerks time. A redesign of the procurement process eliminated virtually all discrepancies and produced significant cost savings. Situation 6 A: Five years ago, the management of Breeann Products commissioned an outside engineering consulting firm to conduct a time-and-motion study so that labor efficiency standards could be developed and used in production. These labor efficiency standards are still in use today and are viewed by management as an important indicator of productive efficiency. B: Janet was quite satisfied with this quarters labor performance. When compared with the same quarter of last year, labor productivity had increased by 23 percent. Most of the increase was due to a new assembly approach suggested by production line workers. She was also pleased to see that materials productivity had increased. The increase in materials productivity was attributed to reducing scrap because of improved quality. Situation 7 A: The system converts materials into products, not people at work stations. Therefore, process efficiency is more important than labor efficiencybut we also must pay particular attention to those who use the products we produce, whether inside or outside the firm. B: I was quite happy to see a revenue increase of 15 percent over last year, especially when the budget called for a 10 percent increase. However, after reading the recent copy of our trade journal, I now wonder whether we are doing so well. I found out that the market expanded by 30 percent, and our leading competitor increased its sales by 40 percent.