Question

In: Accounting

“Consider the following short descriptions. Required: Indicate whether each description relates more closely to a major...

“Consider the following short descriptions.

Required: Indicate whether each description relates more closely to a major feature of financial accounting or management accounting.”

Report on past performance to external parties
Inform internal decisions made by employees and managers
Provides information to stockholders and creditors
Has less flexibility
Is characterised by detailed reports
Is future oriented
Field is less sharply defined
Behavioural impact is secondary
Delayed, historical
Is constrained by regulations

Solutions

Expert Solution

i. Report on past performance to external parties

Financial Accounting

It provides information about the financial performance that have already taken place. This information is mainly used by external parties who are not in part of the entity's decision making process.

ii. Inform internal decisions made by employees and managers

Management Accounting

It Provides information to management for planning and co-ordination.

iii. Provides information to stockholders and creditors

Financial Accounting

The users of financial accounting statements are shareholders, creditors, financial analysts and
government and its agencies, etc.

iv. Has less flexibility

Financial Accounting

Financial accounting has less flexibility since it is constrained by GAAPs.

v. Is characterised by detailed reports

Management Accounting

managerial accounting produces very detailed reports. Concerned about details of entity, products, department, territories etc.

vi. Is future oriented

Management Accounting

managerial accounting has future orientation since it uses formal budgets as well as historical records.

vii. Field is less sharply defined

Management Accounting

In management accounting has the field less sharply defined. It has heavy use of other discipline i.e economics, decision sciences and behavioral sciences.

viii. Behavioural impact is secondary

Financial Accounting

In financial accounting behavioral impact is secondary i.e it concerns the measure of performance of business by communicating and measuring economic phenomenon.

ix. Delayed, historical

Financial Accounting

It records historical data that is the transactions which have been already occured.

x. Is constrained by regulations

Financial Accounting

Financial accounting is a legal requirement. It is necessary to maintain the books of accounts and prepare financial statements there from. It is also obligatory to get these financial statements audited.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

For each of the following, indicate whether the idea is most closely associated with the first...

For each of the following, indicate whether the idea is most closely associated with the first industrial revolution, the second industrial revolution, neither, or both. Question 1 options: 1 Railroads 12 Time zones 3 The steam engine 4 Steam boats 5 Mechanization 5 Telegraph 6 A technological (as opposed to political) revolution 7 The internet 8 The possibility of traveling from coast to coast in the US in under a week 1. First Industrial Revolution 2. Second Industrial Revolution 3....

For each of the following, indicate whether the idea is most closely associated with the first...

For each of the following, indicate whether the idea is most closely associated with the first industrial revolution, the second industrial revolution, neither, or both. Question 1 options: 1234 Steam boats 1234 Time zones 1234 The internet 1234 Railroads 1234 The steam engine 1234 Mechanization 1234 Telegraph 1234 The possibility of traveling from coast to coast in the US in under a week 1234 A technological (as opposed to political) revolution 1. First Industrial Revolution 2. Second Industrial Revolution 3....

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist....

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist. Description Saving Investment This occurs when a person or firm purchasesd new capital. ( ) ( ) This occurs when a person’s income exceeds his consumption. ( ) ( ) Which of the following situations represent saving. Check all that apply. You use your $200 paycheck to buy stock in AT&T. ( ) You borrow $1,000 from a bank to buy a car to...

For each of the following statements, indicate whether the statement relates to macroeconomics or microeconomics. [Each...

For each of the following statements, indicate whether the statement relates to macroeconomics or microeconomics. [Each is 2 points] a. Unemployment soars in Spain b. The price of gasoline in the United States has increased this year c. The U.S. government cuts taxes to combat a recession d. The quantity of wheat grown in the United States this year is higher than last year’s wheat production. e. Delta Airlines has changed its fares in response to an increase in jet...

For each of the following, indicate whether it is a short run (S) or a long...

For each of the following, indicate whether it is a short run (S) or a long run (L) occurance: Firms can adjust the production amount by changing the amount of variable materials within the limits of established capacity. New firms can enter and established firms can leave the industry. Firms can adjust capacity to achieve economies of scale or economies of scope. Consumers can adjust their tastes and selections, leaving or entering the market and switching to or from substitute...

Indicate whether the use of IFRS or ASPE is required or more likely for the following entities:

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence'). ___ Prices are set in advance of (that is, before) market trading ____ Price = average costs (direct and overhead) times (one plus the profit mark-up) ___ A technological change which makes production cheaper will be adopted by perfectly competitive firms, ultimately leading to lower prices for consumers ___ Technological change can cause obsolescence and...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence'). ____ An important role of prices is to ensure sufficient (not maximum) profits so firms can survive and grow through investment ____ Demand management ____ Some power passes from top management to his/her subordinates because only the subordinates have the specialized knowledge necessary to make informed decisions ___ Price = average revenue according to demand...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence'). ___Firms compete through their investments (as opposed to price) ___Price = average revenue according to demand at the quantity where marginal cost = marginal revenue ___Some power passes from top management to his/her subordinates because only the subordinates have the specialized knowledge necessary to make informed decisions ___The goals of the firm reflect its owners'...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics...

For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence'). ____ Price competition is very often destabilizing, threatening the survival of the firm ____ Price competition between firms is an essential part of the equilibrating process in capitalist economies ____ An important role of prices is to ensure sufficient (not maximum) profits so firms can survive and grow through investment ____ Demand management

Subjects