LO 1-1: Managerial and Financial Accounting

Which of the following are characteristics of managerial accounting information? a) provides information to the company's management team B) is future oriented C) more willing to sacrifice reliability to gain relevance than is financial accounting D) all are characteristics of managerial accounting

D.

Financial Accounting Standards Board (FASB) establishes standards for the preparation of financial accounting reports while the Securities and Exchange Commission (SEC) establishes standards for the preparation of managerial accounting reports. This statement is?

False; The FASB and the SEC provide regulations for financial reporting. Managerial accounting is largely unregulated

Managerial Accounting focuses on the needs of external users while financial accounting focuses on the needs of internal users. This statement is?

False; it is the opposite

Which branch of accounting focuses more on historical data?

Financial accounting; Managerial accounting focuses on current and future data

Which type of accounting reports are more regulated? Less regulated?

Financial; managerial Financial reports are for external users; managerial are internal only, so regulation is not as necessary