Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): Helps creditors make lending decisions.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 16, Problem 1TI

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): Helps creditors make lending decisions.

Expert Solution & Answer

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Explain the importance of financial accounting information for external parties—primarilyinvestors and creditors—in terms of the objectives and the characteristics of that information.

Discuss the terms relevance and faithful representation as they relate to financial accounting information.

Define Financial accounting.

Answer 2

Textbook Question

Chapter 16, Problem 1TI

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): Helps creditors make lending decisions.

Expert Solution & Answer

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 16, Problem 1TI

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): Helps creditors make lending decisions.

Expert Solution & Answer

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 16, Problem 1TI

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): Helps creditors make lending decisions.

Expert Solution & Answer

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Answer 8

Expert Solution & Answer

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify whether the financial accounting or the managerial accounting to help the creditors for make the lending decisions.

Answer 12

Answer to Problem 1TI

Financial accounting is helpful to creditors for making lending decisions.

Answer 13

Explanation of Solution

Financial accounting: Financial accounting is the process of measuring the business activities of an organisation and communicating those measurements to investors, creditors and other external parties who depend upon the accounting information for making investment and lending decisions.

Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.

Primarily the users of financial accounting are the external users, such as stockholders, government, and creditors, whereas the primary users of managerial accounting are internal users, such as managers, and employees of the company.

Therefore, financial accounting helps the creditors to make the lending decisions.

Answer 14

Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Prob. 6TI Ch. 16 - Prob. 7TI Ch. 16 - Prob. 8TI Ch. 16 - Identify each cost as a period cost or a product...Ch. 16 - Identify each cost as a period cost or a product...

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA): Helps creditors make lending decisions.

Concept explainers

Videos

Answer to Problem 1TI

Explanation of Solution

Want to see more full solutions like this?

Chapter 16 Solutions

Additional Business Textbook Solutions