Unit 1 - Quiz 1

Reports are prepared for internal users

• Managerial Accounting

• Financial Accounting

Built along the fundamental equation: Assets = Liabilities + Owner’s Equity

• Managerial Accounting

• Financial Accounting

Accounting information is prepared in accordance with generally accepted accounting principles.

• Managerial Accounting

• Financial Accounting

Reports are mandatory

• Managerial Accounting

• Financial Accounting

It deals with the monetary and nonmonetary information

• Managerial Accounting

• Financial Accounting

Includes current figures, and estimates or plans for the future

• Managerial Accounting

• Financial Accounting

Timeliness and relevance of information are more important rather than precision

• Managerial Accounting

• Financial Accounting

Reports tend to be much more extensive and detailed for better analysis and control

• Managerial Accounting

• Financial Accounting

Information is drawn heavily from the company’s accounting system

• Managerial Accounting

• Financial Accounting

Its purpose is to produce financial statements

• Managerial Accounting

• Financial Accounting