Managerial Accounting versus Financial Accounting: Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company. Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports. To state: The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

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

What is jupiter Airways degree of operating leverage?

Creston Enterprises manufactures several product lines. Last year, the company's variable costing net operating income was $92,000, and ending inventory increased by 1,500units. Fixed manufacturing overhead cost per unit was $3. Determine the absorption costing net operating income for last year.

I need guidance with this general accounting problem using the right accounting principles.

Answer 2

Question

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

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

Question

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

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

Question

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

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

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

Answer 6

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

Answer 7

Chapter 18, Problem 1QS

To determine

Introduction:

Managerial Accounting versus Financial Accounting:

Managerial accounting refers to the system that helps the managers with relevant information to develop strategies and make policies and plans that are useful in decision making for the effective operation of the business. On the other hand financial accounting refers to the system that focuses mainly on presenting the true and fair financial statement and reports to the stakeholders of the company.

Managerial accounting is concerned only with internal management and does not comply with any specific standards while there are various accounting standards established to be adhered by finance managers in preparing financial statements and reports.

To state:

The type of accounting whether it relates to managerial accounting or financial accounting based on their description.

Answer 8

Expert Solution & Answer

Answer to Problem 1QS

Solution:

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 18, Problem 1QS

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

1. Managerial accounting contains economic information related to the company that are useful in decision making process for the managers and internal users within the company.

2. Financial accounting deals with financial statements and reports and are used by external users of the company for which accuracy is to be important. Hence the audit team will deeply analyse and verify the accuracy of the information presented after which it is available to the users.

3. Financial accounting is most concerned with the needs of the business as a whole where it represents statements and reports, profits or loss of the entire business and limited to a specific department.

4. Managerial accounting has no specific standard or rules for the preparation of reports and statements and it is not a mandatory requirement by any law. Thus managerial accounting principles and practices are very simple.

5. Financial accounting has its focus on past results and the financial statements which are already distributed to the external users. It is the comparison of current reports with the past reports to analyse the improvements made by the business.

Answer 12

Conclusion

Each description is analysed based on the characteristic features of accounting to identify the type of accounting.

Answer 13

Ch. 18 - Prob. 1QS Ch. 18 - Prob. 2QS Ch. 18 - Fixed and variable costs C2 Listed below are...Ch. 18 - Prob. 4QS Ch. 18 - Prob. 5QS Ch. 18 - Prob. 6QS Ch. 18 - Prob. 7QS Ch. 18 - Prob. 8QS Ch. 18 - Prob. 9QS Ch. 18 - Prob. 10QS

Answer to Problem 1QS

Explanation of Solution

Want to see more full solutions like this?

Chapter 18 Solutions