BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A language which communicates economic information to interested parties
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Is a financial type of accounting information and the reporting of the results and financial position of a business.
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Accumulation of accounting information for a company’s internal users
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Accumulation of accounting information for a company’s external users
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Detailed explanation-1: -Financial Accounting is the process of documenting, analyzing and reporting every transaction of a business or an organization, in order to assess the financial health and stability of the same. There are a set of guidelines to be followed according to the Financial Accounting Standards Board (FASB), US.
Detailed explanation-2: -There are two primary types of financial accounting: the accrual method and the cash method. The primary difference between the two types of financial accounting in the timing in which transactions are (or are not) recorded.
Detailed explanation-3: -Also referred to as the statement of financial position, a company’s balance sheet provides information on what the company is worth from a book value perspective.
Detailed explanation-4: -The three main types financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues and costs, as well as its cash flows from operating, investing, and financing activities.
Detailed explanation-5: -Financial reporting is an accounting process that communicates financial data to external and internal stakeholders, such as shareholders, lenders and senior company management.