Briefly distinguish between financial accounting and managerial accounting.
What will be an ideal response?
Financial accounting is designed to satisfy the needs of external resource providers (external users), and must adhere to Generally Accepted Accounting Principles. Managerial accounting, however, provides information that is useful to managers within a business (internal users), and does not have to follow GAAP.
You might also like to view...
The net marketing contribution for TRX Inc. is $25 million, and sales revenues equal $150 million. Calculate the marketing ROS for TRX
A) 15% B) 26.3% C) 25% D) 306% E) 16.6%
Depreciation Expense–Equipment is an example of a contra account
Indicate whether the statement is true or false
In a responsibility accounting system:
A. Outputs of the departments are not part of the evaluation process. B. Each accounting report contains all items allocated to a responsibility center. C. Organized and clear lines of authority and responsibility are only incidental. D. Managers are responsible for their departments' controllable costs. E. All managers at a given level have equal authority and responsibility.
A collective mark is used in connection with goods or services to certify their regional origin
a. True b. False Indicate whether the statement is true or false