Question

True or False

Answer 1

Answer:

1. False

2. True

3. True

4. True

Explanation:

1. There is an overlap between financial and managerial accounting. For example, inventory method and expenses. Again, financial groups and management groups are working together to create information in aligning the necessary planning, controlling, and decision making. Therefore, it is a false statement.

2. While planning, controlling and making a decision, managerial accountants have to rely on past performance. It is a true statement.

3. Managerial accounting does not need to conform to GAAP or even IFRS. It is a true sentence.

4. Financial statements indeed have to conform to GAAP (Generally accepted accounting principles). It is a true statement too.)