Financial Accounting and Managerial Accounting – Flashcards
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Which of the following is the area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making?
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Managerial accounting
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Which type of accounting has more flexibility in preparing financial statements?
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Managerial accounting
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When the primary users of the accounting are a company's managers, employees, or chief executive officer (CEO), it is __________.
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Managerial accounting
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Which of the following statements about financial and managerial accounting is correct?
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Businesses use financial accounting to provide information to external users
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Which type of accounting is more rules-based?
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Financial accounting
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Which type of accounting focuses on the future?
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Managerial accounting
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Accounting that is useful to bring together information on the entire business over time to determine its financial performance is __________.
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Financial accounting
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Which of the following statements about financial and managerial accounting is not correct?
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Information from managerial accounting must be shared with a company's shareholders so they can make informed decisions ; Information from managerial accounting must be shared with a company's shareholders so they can make informed decisions
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Which type of accounting reports must be prepared according to GAAP?
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Financial accounting
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Which of the statements is true about managerial accounting?
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It focuses on estimating future revenues, costs, and other measures to forecast activities and their results
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When the primary users of the accounting are outsiders such as investors, creditors, and suppliers, it is __________.
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Financial accounting
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Which of the following statements is not correct regarding the financial statements prepared under the managerial accounting theory?
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When preparing financial statements under management accounting, GAAP does have to be followed
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When accountants focus on a business's total transactions, rather than individual transactions or products, it is __________.
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Financial accounting
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Which type of accounting has a historical focus?
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Financial accounting
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Which of the following accounting has reports prepared "as-needed" by users?
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Managerial accounting
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What are two kinds of accounting?
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managerial accounting and financial accounting
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Which of the following accounting has reports prepared "as-needed" by users?
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Managerial accounting
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When individuals within a business use information to make day-to-day decisions such as how many goods to buy for sale, when to hire employees, and how to increase sales or efficiently reduce costs, it is __________.
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Managerial accounting
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When the format of financial accounts is determined by company policy and must also adhere to rules set up by federal governing agencies, it is __________.
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Financial accounting
