Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

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Answer 1

Question

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.

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Answer 2

Question

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.

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Answer 3

Question

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.

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Answer 4

Question

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.

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Answer 5

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.

Answer 6

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.

Answer 7

Chapter 1, Problem 1Q

To determine

Describe the reason management accounting that should not fit the straitjacket of financial accounting and give example.

Answer 8

Expert Solution & Answer

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Financial accounting is controlled by generally accepted accounting principles whereas, management accounting is not restricted to any of these principles. The results are given below:

Managers charge interest on owner’s capital to help judge a division’s performance which is allowed by management accounting. In GAAP such charge is not allowed.
Management accounting includes assets or liabilities (such as internal development of brand names) which are not recognized under GAAP.
Management accounting uses asset or liability measurement rules (such as present values or resale prices) which are restricted under GAAP.