BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Detailed explanation-1: -More Financial Stability Accurate accounting helps your business create and control company budgets to know when and how money comes and goes from your business. It can also help you plan for enough cash reserves to see you through a cash crunch.
Detailed explanation-2: -Financial accounting results in the determination of net income at the bottom of the income statement. Assets, liabilities and equity accounts are reported on the balance sheet. The balance sheet utilizes financial accounting to report ownership of the company’s future economic benefits.
Detailed explanation-3: -The answer is letter D. Managerial accounting need not follow GAAP while Financial accounting shoud follow GAAP. D represents the correct answer i.e. Managerial accounting does not has to be based on international or local accounting standards while Financial accounting shoud follow GAAP or IFRS.
Detailed explanation-4: -The focus of financial accounting is on summarizing and reporting a business’s financial position to entities outside the business with a vested interest, such as stockholders, creditors, government agencies and suppliers.