Chapter 1 Introduction of Managerial Accounting

What is a similarity between Managerial Accounting and Financial Accounting?

• Both report to the same group of accounting users.

• Both reporting past financial events.

• Both providing information for decision making purposes.

• Both using the same accounting standards of MASB.

When Managerial Accounting report is needed to be prepared?

• Once a year

• Every month

• Whenever cost accountant has free time

• Whenever required by manager

What is the type of users of managerial accounting?

• Internal users ( managers, employees, partners...)

• Internal and external user ( Owners of stockholders,lenders,customers...)

What is the characteristics of managerial accounting information?

• Accuracy

• Timeliness

• Relevance

• All of above

What is the roles of management accountant?

• Provide information and accounting reports

• Responsible for carrying out the task of helping the management

• Assist departments in achieving the organization objectives.

• All of above

The area of accounting which focuses on reporting information to internal users.

• Financial Accounting

• Managerial Accounting

• Payroll Accounting

• Accounts Payable Accounting

Managerial and Financial Accounting are the same

• True

• False

Three activities that Managerial Accounting helps managers do:

• Plan

• Act

• Manage

• Do

Which reports to people inside AND outside of the business?

• Managerial Accounting

• Financial Accounting

What is the similarity of Financial Accounting and Managerial Accounting?

• Record and report financial information from business transactions

• Both follows GAAP

• Both are required by IRS and SEC

• Both do not have to be done