MANAGERIAL ACCOUNTING-ACCESS
14th Edition
ISBN: 9781337270830
Author: WARREN
Publisher: CENGAGE L
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Question
Chapter 1, Problem 1DQ
To determine
Indicate the major difference between financial accounting and managerial accounting.
Expert Solution & Answer
Explanation of Solution
Financial accounting: Financial accounting is the process of recording, summarizing, and reporting all the transactions in the financial statement of the business over a period of time. The financial statement consists of the balance sheet, income statement, statement of
Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information which are designed to meet the goals of the organization.
The major difference between financial accounting and managerial accounting are as follows:
- Financial accounting is reported in the financial statement that is useful to external users as well as to the company management. Managerial
accounting is only used by the management. - Financial accounting information is objective in nature whereas the managerial accounting information is both objective and subjective in nature.
- Financial accounting guidelines are prepared according to GAAP guidelines. Managerial accounting guidelines are prepared according to the management needs.
Financial accounting reports are prepared at fixed intervals and the managerial accounting are prepared at fixed intervals and on the basis of the requirement.- In financial accounting, the financial statement is reported for the whole company whereas in the managerial accounting, the reports are reported either for whole company or for each segment.
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Chapter 1 Solutions
MANAGERIAL ACCOUNTING-ACCESS
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - Prob. 9DQCh. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Concepts and terminology From the choices...Ch. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Prob. 10ECh. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - Classifying costs The following is a list of costs...Ch. 1 - Prob. 2PACh. 1 - Cost classifications for a service company A...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - Classifying costs The following is a list of costs...Ch. 1 - Prob. 3PBCh. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1ADMCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 3ADMCh. 1 - Prob. 4ADMCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...
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Similar questions
- What are the key differences between financial accounting and managerial accounting?arrow_forwardShould a managerial accounting system provide both financial and nonfinancial information? Explain.arrow_forwardHow do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?arrow_forward
- What is the purpose of management accounting?arrow_forwardWho are the primary users of the information gathered by managerial accountants?arrow_forwardManagement accounting: emphasizes special-purpose information relates to the company as a whole is limited to strictly cost figures is controlled by GAAParrow_forward
- Explain how managerial accountants help managers plan, control, and evaluate.arrow_forwardIs there a way to prevent managers from focusing on accounting measures as performance measures?arrow_forwardAn 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.arrow_forward
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