Management Accounting Versus Financial Accounting. Management accounting differs from financial accounting in a number of ways. Indicate whether each of the following characteristics relates to management accounting (MA) or financial accounting (FA): Publically reported - Forward looking - Usually confidential- Complies with accounting standards- Reports past performance - Uses physical measures as well as monetary ones for reports- Focus on business decision making– Driven by user needs - The Balanced Scorecard: Stakeholder Values. In the balanced scorecard approach, stakeholder groups with different perspectives value different performance goals. Sometimes, however, they may be interested in the same goal. Indicate which stakeholder groups—financial (F), learning and growth (L), internal business processes (P), and customers (C)— value the following performance goals: High wages Safe products. Low-priced products Improved return on investment Job security Cost-effective production processes XYZ Co. wants to know if its profitability performance has increased from 2009 to 2010. The company had net income of $48,000 in 2009 and $50,000 in 2010. Total assets were $480,000 at the end of 2009, and $560,000 at the end of 2010. Calculate return on assets(ROA) for 2009 and 2010and Comment on the results.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Management Accounting Versus Financial Accounting. Management accounting differs from financial accounting in a number of ways. Indicate whether each of the following characteristics relates to management accounting (MA) or financial accounting (FA):
Publically reported -
Forward looking -
Usually confidential-
Complies with accounting standards-
Reports past performance -
Uses physical measures as well as monetary ones for reports-
Focus on business decision making–
Driven by user needs -
The Balanced Scorecard: Stakeholder Values. In the balanced scorecard approach, stakeholder groups with different perspectives value different performance goals. Sometimes, however, they may be interested in the same goal. Indicate which stakeholder groups—financial (F), learning and growth (L), internal business processes (P), and customers (C)— value the following performance goals:
High wages
Safe products.
Low-priced products
Improved return on investment
Job security
Cost-effective production processes
XYZ Co. wants to know if its profitability performance has increased from 2009 to 2010. The company had net income of $48,000 in 2009 and $50,000 in 2010. Total assets were $480,000 at the end of 2009, and $560,000 at the end of 2010. Calculate return on assets(ROA) for 2009 and 2010and Comment on the results.

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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