. Indicate whether each statement describes financial accounting or managerial accounting.The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions.The principal users are the organization’s managers.The key focus is on the entity as a whole.The rules and principles are very flexible.The information gathered is usually available after an independent audit has been completed.2. Identify the following as True or False:Managerial accounting reports must comply with the rules set in place by the FASB.Financial accounting reports are typically general-purpose reports.Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization.The main users of the financial accounting information are the internal users.Managerial reports are prepared on an as-needed basis.Financial accounting reports often must be audited at least annually by an independent auditor.3. Taylor Speedy has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false.Financial accounting centers on providing information to internal users.Staff positions are directly involved in the company’s primary revenue-generating activities.Preparation of budgets is part of financial accounting.Managerial accounting applies only to merchandising and manufacturing companies.Both managerial accounting and financial accounting deal with many of the same economic events.4. Match the term with the description:A. Certified Public Accountanti. Specialist in corporate accounting management; favors financial analytics, budgeting, and strategic domainsB. Chartered Financial Analystii. Considered the top tier in accounting certifications; must pass a four-part exam, with education and work experience requirementsC. Certified Management Accountantiii. Designation that is exclusively for auditors of the public sectorD. Certified Internal Auditoriv. Credential for auditors who work within organizations and is one of a few that is accepted worldwideE. Certified Fraud Examinerv. Certification for those with a career in finance and investment areasF. Certified Government Auditing Professionalvi. Designation that proves proficiency in fraud prevention, detection, and deterrence 5. Indicate whether each of the following statements is true or false.Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision.The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics.Managers are required to follow specific rules issued by the IMA for internal financial reporting.Ethics is more than obeying laws.The Sarbanes-Oxley Act addressed public company accounting reform.

Financial Accounting means the process of recording the transaction , posting , summarising ,…

Answered: Indicate whether each statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

. Indicate whether each statement describes financial accounting or managerial accounting.

The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions.
The principal users are the organization’s managers.
The key focus is on the entity as a whole.
The rules and principles are very flexible.
The information gathered is usually available after an independent audit has been completed.

2. Identify the following as True or False:

Managerial accounting reports must comply with the rules set in place by the FASB.
Financial accounting reports are typically general-purpose reports.
Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization.
The main users of the financial accounting information are the internal users.
Managerial reports are prepared on an as-needed basis.
Financial accounting reports often must be audited at least annually by an independent auditor.

3. Taylor Speedy has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false.

Financial accounting centers on providing information to internal users.
Staff positions are directly involved in the company’s primary revenue-generating activities.
Preparation of budgets is part of financial accounting.
Managerial accounting applies only to merchandising and manufacturing companies.
Both managerial accounting and financial accounting deal with many of the same economic events.

4. Match the term with the description:

A. Certified Public Accountant	i. Specialist in corporate accounting management; favors financial analytics, budgeting, and strategic domains
B. Chartered Financial Analyst	ii. Considered the top tier in accounting certifications; must pass a four-part exam, with education and work experience requirements
C. Certified Management Accountant	iii. Designation that is exclusively for auditors of the public sector
D. Certified Internal Auditor	iv. Credential for auditors who work within organizations and is one of a few that is accepted worldwide
E. Certified Fraud Examiner	v. Certification for those with a career in finance and investment areas
F. Certified Government Auditing Professional	vi. Designation that proves proficiency in fraud prevention, detection, and deterrence

5. Indicate whether each of the following statements is true or false.

Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision.
The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics.
Managers are required to follow specific rules issued by the IMA for internal financial reporting.
Ethics is more than obeying laws.
The Sarbanes-Oxley Act addressed public company accounting reform.

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

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