Chapter 1, Problem 1EA

Indicate whether each statement describes financial accounting or managerial accounting.

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