Financial vs Managerial Accounting

Financial Information is used by external users such as:

• Government

• Employees

• Managers

• CEO

Financial Accounting DOES NOT provide enough information for the types of decisions made in the day to day operation of the business.

• True

• False

Management Accounting provides a useful level of detail for INTERNAL users such as:

• Government

• Creditors

• Managers

• Suppliers

Management Accounting is the process that allows decision makers to set and evaluate business goals by determining what information they need to make a particular decision and how to analyze and communicate this information.

• True

• False

The acronym GAAP refer to:

• General Administration Assistance Position

• Generally Accepted Administrative Persons

• Generally Accepted Accounting Practices

• General Accepted Assistance Programme

Financial Accounting information is normally prepared:

• As frequently as needed

• Monthly

• Daily

• Quarterly/Annually

Managerial Accounting Information is normally prepared:

• Quarterly

• Annually

• As frequently as needed

• Semi-anually

Financial statements include all of the following EXCEPT:

• Job Cost Sheet

• Income Statement

• Balance Sheet

• Cash Flow Statement

Managerial Accounting reports include all of the following EXCEPT:

• Job Cost Sheet

• Cost of Goods Manufactured

• Income Statement

• Production Cost Report

Financial Accounting information helps external users make decisions such as credit terms and investment decisions.

• True

• False