Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax asset? (1)

Subscriptions collected in advance More test answers on https://studyhippo.com/acct-312-chapter-16-mc-56290/

What information characteristic is emphasized behind financial accounting?

The data must be reliable and objective More test answers on https://studyhippo.com/managerial-accounting-textbook-notes-56555/

All the following are ways in which accounting information is used by Financial accounting except too…

plan and control a company’s operations More test answers on https://studyhippo.com/accounting-311-chapter-1-56262/

Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax liability? (2)

Depreciation early in the life of an asset More test answers on https://studyhippo.com/acct-312-chapter-16-mc-56290/

Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax asset? (2)

Unrealized loss from recording inventory impairments More test answers on https://studyhippo.com/acct-312-chapter-16-mc-56290/

What is the primary difference between managerial and financial accounting?

Managerial accounting provides information for internal use, and financial accounting provides information for external users. More test answers on https://studyhippo.com/managerial-accounting-ch-1-4-mcgraw-hill-learn-smart/

What is the purpose of information for Managerial/Financial Accounting?

Managerial: Help managers plan, direct, control Financial: Help external users make investing and lending decisions More test answers on https://studyhippo.com/day-11-managerial-accounting/

WHAT IS THE PURPOSE OF INFORMATION IN FINANCIAL ACCOUNTING?

to help external users make investing and loaning decisions More test answers on https://studyhippo.com/accounting-241/

What is the purpose of the information behind financial accounting?

To help external users make investing and lending decisions More test answers on https://studyhippo.com/managerial-accounting-textbook-notes-56555/

What is the underlying basis of the information behind financial accounting?

The information is based on historical transactions with external parties More test answers on https://studyhippo.com/managerial-accounting-textbook-notes-56555/

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Financial Accounting Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Financial Accounting and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Financial Accounting and get quick solutions for your test.

What is Financial Accounting?

Financial accounting is a branch of accounting which focuses on the preparation and analysis of financial statements. It involves recording, summarizing, analyzing and reporting financial transactions that take place within an organization. Financial accounting plays an important role in making decisions related to business operations by providing reliable financial information.Accounting records provide data about the resources used by a company or organization to generate revenue as well as track expenses incurred for its operations. The purpose of this information is to analyze if money is being spent wisely, accurately measure performance over time, assess overall profitability, identify areas where costs can be reduced and help manage cash flow more efficiently. Financial statements such as Balance Sheets, Profit & Loss Statements and Cash Flow Statements are prepared from these records in order to communicate the results of operations along with other essential information about a business entity’s financial position at any particular point in time. These reports are then reviewed internally (by management) or externally (by stakeholders) to gain insight into trends or make informed decisions regarding investments and/or future activities. Financial accounting also provides accountability between managers who are responsible for allocating funds properly and those held accountable for utilizing them responsibly. This system helps ensure that resources are not wasted or misused while also helping protect against fraud and corruption within organizations by providing detailed documentation of all activities conducted through the system itself (e.g., purchasing materials). Moreover, it allows companies to compare their own performance against industry standards while highlighting potential weaknesses they must address in order remain competitive within their respective markets. In conclusion, financial accounting is essential for businesses looking to succeed financially because it enables them to easily monitor their progress over time while preventing misuse of funds/assets through proper record-keeping practices.