Financial Accounting v/s Managerial Accounting : Financial accounting or reporting is used to prepare financial statements to present the financial position of the entity. Financial accounting is mandatory for an entity and it has to follow Generally Accepted Accounting Policies (GAAP) for accounting. The statements produced under financial accounting include the Income statement, balance sheet and statement of cash flows. Users for financial information can be internal as well as external like Lenders, Creditors, Government, Employees, and Owners etc. On the other hand, managerial accounting is used for the purpose of generating internal reports and it is not mandatory for an organization. Reports generated using managerial accountings are budgets, Inventory usage, efficiency reports etc. Users of managerial accounting reports are only internal people like Managers, Directors, head of departments etc. To identify: The type of accounting information used by the user, Financial or managerial

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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.

Chapter 1, Problem S1.1SE

To determine

Financial Accounting v/s Managerial Accounting:

Financial accounting or reporting is used to prepare financial statements to present the financial position of the entity. Financial accounting is mandatory for an entity and it has to follow Generally Accepted Accounting Policies (GAAP) for accounting. The statements produced under financial accounting include the Income statement, balance sheet and statement of cash flows. Users for financial information can be internal as well as external like Lenders, Creditors, Government, Employees, and Owners etc.

On the other hand, managerial accounting is used for the purpose of generating internal reports and it is not mandatory for an organization. Reports generated using managerial accountings are budgets, Inventory usage, efficiency reports etc. Users of managerial accounting reports are only internal people like Managers, Directors, head of departments etc.

To identify:

The type of accounting information used by the user, Financial or managerial

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During May, Schultz Company produced 12,000 units of a product called Premium. Premium has a standard materials cost of three pieces per unit at $6 per piece. The actual materials used consisted of 35,000 pieces at a cost of $175,000. Actual purchases of the materials amounted to 45,000 pieces at a cost of $225,000. Compute the two materials variances.

Answer 2

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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.

Chapter 1, Problem S1.1SE

To determine

Financial Accounting v/s Managerial Accounting:

Financial accounting or reporting is used to prepare financial statements to present the financial position of the entity. Financial accounting is mandatory for an entity and it has to follow Generally Accepted Accounting Policies (GAAP) for accounting. The statements produced under financial accounting include the Income statement, balance sheet and statement of cash flows. Users for financial information can be internal as well as external like Lenders, Creditors, Government, Employees, and Owners etc.

On the other hand, managerial accounting is used for the purpose of generating internal reports and it is not mandatory for an organization. Reports generated using managerial accountings are budgets, Inventory usage, efficiency reports etc. Users of managerial accounting reports are only internal people like Managers, Directors, head of departments etc.

To identify:

The type of accounting information used by the user, Financial or managerial

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

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.

Chapter 1, Problem S1.1SE

To determine

Financial Accounting v/s Managerial Accounting:

Financial accounting or reporting is used to prepare financial statements to present the financial position of the entity. Financial accounting is mandatory for an entity and it has to follow Generally Accepted Accounting Policies (GAAP) for accounting. The statements produced under financial accounting include the Income statement, balance sheet and statement of cash flows. Users for financial information can be internal as well as external like Lenders, Creditors, Government, Employees, and Owners etc.

On the other hand, managerial accounting is used for the purpose of generating internal reports and it is not mandatory for an organization. Reports generated using managerial accountings are budgets, Inventory usage, efficiency reports etc. Users of managerial accounting reports are only internal people like Managers, Directors, head of departments etc.

To identify:

The type of accounting information used by the user, Financial or managerial

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 1, Problem S1.1SE

To determine