Why does the Accounting system used for financial statement preparation not always provide the information that managers need for decision-making purposes?

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: Financial Accounting - This is a branch of accounting under which business transactions are recorded…

Q: Explain the difference between management accounting and financial accounting.

A: ANSWER : Basis of difference Management accounting Financial accounting 1. Meaning…

Q: Which concept states that any policies adopted for accounting should not change frequently unless it…

A: There are basically 11 accounting concepts on which basis accounting is done by accountants across…

Q: Evaluate the strengths and weaknesses of interpretive accounting theory

A: Interpretive Accounting theory:-Interpretive Accounting theory has evolved and made significant…

Q: directed towards future and present, b) follows standards and norms, c) helps managers in decision…

A: Financial statements comprises of the following: Balance Sheet  Income statement  Statement of Cash…

Q: Explain why the accounting standards are necessary in financial reporting.

A: Accounting Standards are the rules and guidelines that are used for preparation of financial…

Q: how will a change from cash basis accounting to accural basis accounting positively and negatively…

A: Books of accounts can be maintained either using the cash basis accounting or using the accrual…

Q: How are financial accountants challenged in their work to make ethical decisions? Is technical…

A: Ethical behavior implies taking such actions which are not only as per laws but also confirm to…

Q: What are the functions of the financial balance sheet in assisting in management's decision-making…

A: The question is based on the usage of balance sheet in financial decision making  by managers.

Q: How does management accounting differ from financial accounting?

A: State the way in which the management accounting differs from financial accounting:Accounting is an…

Q: Which of the following is NOT an objective of Management Accounting? a. Interpretation of Financial…

A: Management accounting refers to use of accounting and financial information of an entity in order to…

Q: What is the relationship between accounting theory reporting and?

A: This question illustrates the connection between accounting theory and reporting.

Q: What is the basic difference in orientation between financial and management accounting?

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarizing and…

Q: What are the costs and benefits of management’s use of judgement in financial reporting?

A: Management is the internal part of any organization and thus it plays a very crucial role in making…

Q: How does financial statements help employees in decision making?

A: Financial statements are statements or reports that are prepared at the end of the accounting period…

Q: “Management accounting should not fit the straitjacket of financial accounting.” Explain and givean…

A: Financial accounting is concerned primarily with the financial data related to an organization…

Q: State whether the following statement is true or false. "Accounting relies on inexact or approximate…

A: Financial Statements are the outcomes of accounting concepts and conventions combined with…

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: Financial accounting is a branch of accounting which means preparation and circulation of financial…

Q: What is the fundamental difference between financial accounting and management accounting in terms…

A: An accountant's job is to keep track of the findings and analyze them.

Q: Accuracy of information is important but the timeliness of information is focused in management…

A: Solution:- Definitions:- Timeliness is how quickly information is available to users of accounting…

Q: From the following statements which one is not the correct classification of accounting theory

A: Accounting theory is the theory which is actually the set of guidelines, principles or in order…

Q: How do the subject matter of reports and the verification of reports differ between financial…

A: Both financial and managerial reporting have different scope and objectives .Detail explanation…

Q: What is meant by "financial accounting" and "management accounting"? What is the difference between…

A: Financial Accounting:    It is collection of accounting data to create financial statements. It…

Q: Financial accounting information can be used for internal reporting purposes.

A: The costs involve the fixed cost and variable cost in the production process of the company.

Q: Why are some managers motivated to manipulate amounts reported in the financial statements?

A: Financial statements are prepared at the end of the year to analyse the financial position and cash…

Q: Which of the following statements regarding users of financial information is correct? Managers of…

A: Financial statement means the statement including income statement , balance sheet , cash flow…

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: The correct option is  C.)

Q: Explain how management accounting should not fit the straitjacket of financial accounting.

A: Definition: Management accounting is concerned with the financial and non-financial data that help…

Q: Who are the focused users/stakeholders of financial accounting and cost accounting?

A: Financial and Cost accounting are the major accounting area in an organization. It will helpful to…

Q: why ethics is important in reporting financial statement?

A: Ethics are the moral principles which a controller should follow while reporting financial…

Q: what is professional judgement in financial accounting ?

A: Financial accounting is that branch of accounting which deals in recording of transactions,…

Q: What is the difference between managerial and financial accounting?

A: Financial accounting and managerial accounting are two of the most important fields of accounting.…

Q: In general, what is the conceptual framework that underlies accounting principles, and how  does it…

A: A conceptual framework can be defined as a system of ideas and objectives that lead to the creation…

Q: What is management's responsibility with respect to the financial statements?

A: Financial Statements: A financial statement is a complete record of the financial transactions that…

Q: The following are basic characteristics of management accounting, except A. It is future-oriented.…

A: Lets start with the meaning of managerial accounting. As the name suggest, it is a accounting for…

Q: The major objective of financial reporting is to provide information that is useful to management in…

A: Financial reporting consists of: Financial statements  Annual report Prospects issued to the…

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: The correct option is  B. Only financial accounting involves the use of accounting information

Q: Which of the following branches of accounting is often limited to preparing and distributing…

A: Accounting is the process whereby the costs and revenues of the business are estimated and recorded.…

Q: financial information alone be insufficient for the ongoing informational needs of operat

A: Financial information is the data conveyed by the financial statements regarding the financial…

Q: which manner the manager behave when choosing a particular accounting method to increase the…

A: Earnings management can be defined as the accounting method in order to depict a positive view in…

Q: Explain why financial statements are important to managers and to outside parties

A: Financial statements are those statements that present a formal record of the various financial…