Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book
Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book
6th Edition
ISBN: 9781119191674
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
Question
Book Icon
Chapter 14, Problem 1Q

(a)

To determine

Explain the term managerial accounting is a field of accounting that provides economic information for all interested parties.

(a)

Expert Solution
Check Mark

Answer to Problem 1Q

Disagree

Explanation of Solution

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

In the field of accounting, the managerial accounting provides both economic and financial information for managers and other internal users. Thereby, it does not provide economic information for all interested parties.

Conclusion

Thus, the term managerial accounting is a field of accounting that provides economic information for all interested parties is disagreed.

(b)

To determine

Explain the belief of J that the managerial accounting serves only manufacturing firms of J, is correct.

(b)

Expert Solution
Check Mark

Answer to Problem 1Q

J is incorrect.

Explanation of Solution

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

This is because managerial accounting applies to all types of businesses such as service, merchandising and manufacturing. Thereby, it cannot serve only the manufacturing firms. Hence, J’s belief is incorrect.

Conclusion

Hence, the belief of J that the managerial accounting serves only manufacturing firms of J is incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education