Question

Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics relates to managerial accounting or financial accounting. a. Reports are usually prepared quarterly and annually. ▼ b. Information is verified by external auditors. ▼ Financial accounting Managerial accounting c. Focus is on the past. ▼ Financial accounting Managerial accounting d. Main characteristic of information is that it must be relevant. ▼ Financial accounting Managerial accounting e. Reports tend to be prepared for the parts of the organization rather than the whole organization. ▼ Financial accounting Managerial accounting f. Primary users are internal​ (i.e., company managers​). ▼ Financial accounting Managerial accounting g. It is governed by Generally Accepted Accounting Principles​ (GAAP) or International Financial Reporting Standards​ (IFRS). ▼ Financial accounting Managerial accounting h. The primary characteristics of information are that it must be reliable and objective. ▼ Financial accounting Managerial accounting i. Reports are prepared as needed. ▼ Financial accounting Managerial accounting j. It is not governed by legal requirements. ▼ Financial accounting Managerial accounting k. Primary users are external​ (i.e., creditors,​ investors). ▼ Financial accounting Managerial accounting l. Focus is on the future. ▼ Financial accounting Managerial accounting m. Reporting is based mainly on the company as a whole.

Answer 1

Answer:

Financial accounting encompasses established policies, rules and standards of recording and reporting of financial activities to achieve established plans and verification of results by auditors to obtain true monetary position of the organization for gaining stakeholder's and external users interests.

Managerial accounting can be defined as an internal process which revolves around monetary and non-monetary affairs without outside influence of auditing standards or accounting constraints.

a. Reports are usually prepared quarterly and annually

Account Relation: Financial accounting

b. Information is verified by external auditors.

Account Relation: Financial accounting

c. Focus is on the past.

Account Relation: Financial accounting

d. Main characteristic of information is that it must be relevant.

Account Relation: Managerial accounting

e. Reports tend to be prepared for the parts of the organization rather than the whole organization.

Account Relation: Managerial accounting

f. Primary users are internal​ (i.e, company managers​).

Account Relation: Financial accounting

i. Reports are prepared as needed.

Account Relation: Financial accounting

j. The primary characteristics of information are that it must be reliable and objective

Account Relation: Financial accounting

k. Primary users are external​ (i.e., creditors,​ investors)

Account Relation: Financial accounting

l. Focus is on the future.

Account Relation: Managerial accounting

m. Reporting is based mainly on the company as a whole.

Account Relation: Financial accounting