...ACC 560 WK 2 Quiz 1 - All Possible Questions To Purchase Click Link Below: http://strtutorials.com/ACC-560-WK-2-Quiz-1-All-Possible-Questions-017.htm ACC 560 WK 2 Quiz 1 - All Possible Questions TRUE-FALSE STATEMENTS 1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports. 2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated. 3. Managerial accounting applies to all forms of business organizations. 4. Determining the unit cost of manufacturing a product is an output of financial accounting. 5. Managerial accounting internal reports are prepared more frequently than are classified financial statements. 6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity. 7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company. 8. Controlling is the process of determining whether planned goals are being met. 9. Decision-making is an integral part of the planning, directing, and controlling functions. 10. Direct materials costs and indirect materials costs are manufacturing overhead. 11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified...
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...Q1. (a) “Managerial accounting is a field of accounting that provides economic information for all interested parties.” Do you agree? Explain. No, I don’t. Managerial accounting provides economic and financial information for managers and other internal users but not for all interested parties. (b) Joe Delong believes that managerial accounting serves only manufacturing firms. Is Joe correct? No, he isn’t. Managerial accounting can be serves to all kind of business for making a decision, so it has not necessary to serve only manufacturing firms. Q2. Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and (c) purpose of reports. The primary users of managerial accounting are managers and officers. The reports usually come out as frequent as needed. Their purposes are for making specific goals. On the other hand, the users of financial accounting are stockholders, creditors, and regulators. The reports usually come out quarterly and annually. Their purposes are usually generally. Q3. How do the content of reports and the verification of reports differ between managerial and financial accounting. The content of reports of the managerial accounting pertains to subunits of the business, and they are very detailed. The content extends beyond double-entry accounting to any relevant data, and the standard is relevance to decisions. The content usually has no independent audits. On the other hand,...
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...this essay I am a manager in an accounting department and would like to hire another managerial accountant. The CEO is not convinced, so I must convince him. Manager Report Accounting has two different purposes: the first is reporting for external users and other is for internal users like management. Because of this, accounting can be put into two different categories: financial accounting and managerial accounting. Financial Accounting gives us a view of the financial position of the company. It is management’s responsibility to keep the accounting records in a way that gives us the correct view of the company; it must be free from any material misstatement, which may distort the reader. In order for it to be conveyed properly, management has to follow certain rules and regulation such as GAAP, IAS, etc. Managerial accounting helps with the planning & control, as well as the decision making activities of the company. The success of the business depends on the planning and the correct decision making in keeping the facts and figures related to the situation, this is what the managerial accounting does. So, Financial Accounting is used for external reporting purpose and the managerial accounting is used for internal reporting purpose. Financial Accounting emphasizes on the financial aspect and the Managerial Accounting is the planning and decision making aspect. Most of the time, reports are created or made for management purposes and don’t meet the requirement...
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...ACC 560 WK 2 Quiz 1 - All Possible Questions To Purchase Click Link Below: http://strtutorials.com/ACC-560-WK-2-Quiz-1-All-Possible-Questions-017.htm ACC 560 WK 2 Quiz 1 - All Possible Questions TRUE-FALSE STATEMENTS 1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports. 2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated. 3. Managerial accounting applies to all forms of business organizations. 4. Determining the unit cost of manufacturing a product is an output of financial accounting. 5. Managerial accounting internal reports are prepared more frequently than are classified financial statements. 6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity. 7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company. 8. Controlling is the process of determining whether planned goals are being met. 9. Decision-making is an integral part of the planning, directing, and controlling functions. 10. Direct materials costs and indirect materials costs are manufacturing overhead. 11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified...
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...The Difference Between Managerial Accounting and Financial Accounting ACC 560 Term Paper In this term paper the author will discuss Managerial Accounting and the components of Managerial Accounting. The author will also compare the different components of financial accounting compared to managerial accounting. According to McGraw Hill, Managerial Accounting is concerned with providing information to managers, people inside an organization who direct and control its operations.” (Garrison & Noreen) Financial Accounting according to McGraw Hill “is concerned with providing information to stockholders, creditors and others who are outside an organization.” (Garrison & Noreen) In managerial accounting a wide variety of reports are prepared. Reports in managerial accounting focus on how well managers and businesses have performed. Most of these reports provide timely, frequent updates on information regarding when orders are received, sales, order backlog, and utilization. Also, according to McGraw Hill, “financial accounting is oriented toward providing a limited set of specific annual and quarterly financial statements in accordance to the Generally Accepted Accounting Principles (GAAP).” (Garrison & Noreen) Managerial Accounting does not have too followed the Generally Accepted Accounting Principles (GAAP). For this reason, managers set aside their own rules concerning the content and form of internal reports. The only...
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...Chapter 1 Introduction to Managerial Accounting Regardless of your major or intended career path, most of you will become managers one day. A manager has responsibility and control of selected parts of a company’s operations, or in some cases, multiple aspects of operations. Only those of you that happen to stay at the ‘bottom’ of a company, prefer never to get promoted, or never accept any responsibility for some aspect of a business, will miss the ‘management’ opportunity. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking...
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...Unit 1 – Introduction to Managerial Accounting Genean Benders American InterContinental University Memo An internal managerial accounting system consists of information that management uses to make decisions about the operations of the business. As per the request of the CEO, I am writing a memo to provide information of the characteristics of managerial accounting and why it is necessary for another managing accountant within our company. The Seven Characteristics of Managerial Accounting There are seven characteristics of an managerial accounting system which is comprised of users and decision makers, purpose of information, flexibility of practice, timeliness of information, time dimension, the focus of information and the nature of information (Wild & Shaw, 2012). There is often confusion between financial and managerial accounting, therefore, the following will give detail of the explanation of the seven characteristics of managerial accounting versus financial accounting. This information should also aid with the understanding of why another managing accountant is needed. Users and decision makers. In managerial accounting, this characteristic refers to the internal management, unlike financial accounting that involves external users such as investors and creditors (Wild & Shaw, 2012). Purpose of Information. Management uses informational reports of the company’s financial activities to make important decisions about the ongoing operations of the...
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...Introduction to Managerial Accounting Regardless of your major or intended career path, most of you will become managers one day. A manager has responsibility and control of selected parts of a company’s operations, or in some cases, multiple aspects of operations. Only those of you that happen to stay at the ‘bottom’ of a company, prefer never to get promoted, or never accept any responsibility for some aspect of a business, will miss the ‘management’ opportunity. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking...
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...Thompson, Managerial Accountant Assistant From: Danielle Wright Breckenridge, Date: January 8, 2015 Subject: Similarities and differences between financial and managerial accounting Hello Susan, I wanted to start by saying welcome aboard. We are glad to have you as a part of the team hear at EEC and I am sure with your experience and accounting background you are going to be a perfect fit. I do understand that you have spend most of your career working in a financial accounting office preparing journal entries, and you have a great understanding of financial accounting however you have no experience with managerial accounting. I am providing this memo in hopes of giving you with an explanation of the similarities and differences between financial and managerial account, give an example of managerial accounting reports, show how management might use information to make decisions and show an example of the horizontal analyzes, vertical analyzes and ratio reports. People may think that financial and managerial accounting is the same thing. On the surface, the actual number crunching of financial data contains a lot of similarities and both accounting types use much of the same data. While it is true there are some similarities, there are also some distinct differences. By taking a closer look at both types of record keeping, these differences become a bit more apparent as they each serve their own function and purpose. |Managerial Accounting ...
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...Explain the similarities and differences in Managerial and Financial Accounting. There a very specific differences between Managerial and Financial Accounting. The differences include the primary users of reports, types and frequency of reports, purpose of reports, content of reports, and the verification processes for each method. Users of financial reporting are external, such as stockholders, creditors, and regulators. Users of managerial reporting are internal users such as officers and managers. Financial accounting produces financial statements quarterly and annually while Managerial accounting produce internal reports as often as they are needed. The purpose of the reports that are used are of a general nature for financial reporting while managerial reporting is for specific purpose as a tool for specific decisions. The content of the reports provided by each method of accounting is also different. Financial accounting pertains to the business as a whole, is highly condensed, limited to cost data and double entry accounting, and adheres to Generally Accepted Accounting Principles (GAAP). In contrast Managerial accounting pertains to subunits within the business, is very detailed in nature, extends well beyond double entry accounting to any relevant data, and the standards applied is dependent on the relevance of the decision. Lastly, the verification process for Financial Accounting is the CPA audit while Managerial accounting does not require independent audits. ...
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...1.0 ABSTRACT Managerial Accounting is tools for business decision making. The use of management accounting information is a key for organizational success. This essay will explain on the importance of managerial accounting process in organization to successfully carrying out the day to day as well as long term activities and goals. First, it describes how the evolution and change in managerial accounting. Second, the essay looks at the role of managerial accountants. Third, it explains several function of managerial accounting that tend to contribute the adds value to organization. 2.0 INTRODUCTION According to the Chartered Institute of Management Accountants ( CIMA ), Management Accounting is defined as the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information for both financial and operating used by management to plan, evaluate and control within an organization and to assure use of and accountability for its resources. The Institute of Management Accountants ( IMA ) defined Management Accounting is a profession that involves partnering in management decision making, devising planning and performance management system and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy. Managerial accounting applies to all types of business such as service, merchandise and manufacturing. It also applies to all forms...
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...Accounting in the Bible Abstract: This paper traces several accounting concepts in the Bible. In particular, the Bible discusses the objectives of accounting, internal control procedures and managerial accounting topics. This paper links the Bible to current accounting thought. The beginnings of modern accounting are commonly traced to Pacioli in the 15th century. Actually many of the fundamental ideas that underlie modern accounting may be traced much further back. The Bible, which is generally viewed as covering events between 1800 B.C. and 95 A.D., contains several references, both direct and indirect, to accounting and basic accounting concepts. In particular, it discusses financial accounting, internal control, and management accounting. The purpose of this paper is to discuss the Bible’s relationship to accounting thought. Financial Accounting One of the major purposes of accounting is to monitor the per-formance of management. In addition, accounting serves the purpose of insuring that the accounting entity is not defrauded either by its agents or by outsiders. The Bible discusses this in a negative way in 2 Kings 12:16 which says about the building of the Temple: “No accounts were kept with the men to whom the money was paid over to be spent on workmen since they were honest in their dealings.” This is virtually repeated in 2 Kings 22:7. We can infer from this that accounts would have been kept if the contractors were less than honest. Thus the Bible points out...
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...Business Accounting Financial And Business Accounting Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.comand get instant access to Financial And Business Accounting and over 30,000 other Papers and Essays Category: Business Autor: anton 01 December 2010 Words: 1039 | Pages: 5 Financial accounting is defined as measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles. It focuses on external reporting. The purpose of financial accounting it to aid accounts in their function of overseeing an organizations financial assets. The central outputs of financial accounting are audited financial statements such as balance sheets and income statements. Financial accounting is geared toward providing information to parties outside the firm, for example prospective shareholders. By contrast, managerial account which measures and reports financial and non-financial information tat helps managers make decisions to abide by the goals of an organization. It focuses on internal reporting. The tools used by managerial accountants to meet their goal of decision support are such things as budgets, activity-based costing and financial planning. Managerial account is designed for internal use by firm’s managers. Cost accounting is a subset of the more inclusive area of managerial accounting. Cost accounting deals with...
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...In today's society, the retail industry is one of the fastest growing industries. It is considered as a vital part of our economy. The purpose of this industry is to provide goods and merchandise to the consumers. Retail industries receive their products directly from the manufacturer or a wholesaler. Grocery stores are considered as a part of the retail industry. They sell a variety of food and non-food products, such as meat, produce, cereal, dairy products, health and beauty aids and cleaning products. Regardless if the store is a major supply chain or a small business; their ultimate goal is provide products for customer’s consumption. Gary's Market is a small sized, family owned grocery store that has been in the business since 1979. Gary's Market is one of Memphis best kept secrets for breakfast, lunch, dinner and selling merchandise by the bulk for low prices. The owner, Mr. Gary has been in the retail business for 40 years. He has proven that hard work and support can provide great results. He states, "I wanted to work for myself and have a legacy to leave for my children." His wife, two daughters and three sons work at the grocery store. Gary has two sons working as the managers, his oldest son is the treasurer, his wife is the manager of the kitchen, his oldest daughter is a secretary, his youngest daughter is financial advisor and Gary is the accountant/CEO. They all have an important part in the business. Starting a small grocery business pose as a challenge...
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...Introduction to Accounting Why Study Accounting? Engineering Accounting • Accounting is pervasive • Used in all types of organizations An Overview Richard S. Barr – For-profit companies – Not-for-profit companies – Governmental organizations 1 2 Organizations Accounting Common characteristics: • An objective or group of objectives • A set of strategies to achieve its objectives • Managers • A key element of management • You must understand what is being reported – – • Managers' performance is often measured by accounting data • This data is used for decision making • An organizational structure – • A need for information 3 Accounting Systems 4 Types of Information • Are the primary quantitative information system in most organizations In accounting systems: • Attention-directing – – Types of information – Purposes of accounting systems • Problem-solving – • Scorekeeping – 5 6 1 Introduction to Accounting Purposes of Acctg Systems Accounting Systems • Internal reporting to managers for planning and control • Internal reporting for special decisions, policies, and long-range plans • External reporting Four Standard Types 7 8 Types of Accounting Systems Financial Accounting 1. 2. 3. 4. • Primarily for the external decision maker Financial Tax Management Cost – – – • External reporting follows legal and GAAP requirements • Objective:...
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