BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Frequency
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Format of Accounting Government by
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Primary Users
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Type of Information
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Detailed explanation-1: -Managerial accounting focuses on internal accounting processes and generates reports that are referenced by management, while financial accounting focuses on aggregating information into financial statements for both internal and external use.
Detailed explanation-2: -Managerial accounting focuses on an organization’s internal financial processes, while financial accounting focuses on an organization’s external financial processes. Managerial accountants focus on short-term growth strategies relating to economic maintenance.
Detailed explanation-3: -Balance Sheet. The balance sheet provides an overview of a company’s assets, liabilities, and shareholders’ equity as a snapshot in time.
Detailed explanation-4: -Accrual principle. This is the concept that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them. This is the foundation of the accrual basis of accounting.
Detailed explanation-5: -The difference between finance and accounting is that accounting focuses on the day-to-day flow of money in and out of a company or institution, whereas finance is a broader term for the management of assets and liabilities and the planning of future growth.