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level: Cost and Management Accounting, Financial Accounting

Questions and Answers List

level questions: Cost and Management Accounting, Financial Accounting

Question	Answer
This is the method of assigning a value to a service or product	Costing
Focuses on the accounting tools managers can use internally to run a business	Management Accounting
Focuses on preparing financial records and reports for external stakeholders such as stockholder, suppliers, banks and government agencies	Financial Accounting
Focuses on providing information for the day-to-day control of operations such as inefficiencies or wastage of materials	Cost Accounting
Used internally by managers at all levels and employees	Management Accounting
Used externally by investors, creditors and government agencies	Financial Accounting
Helps managers and employees to plan and control business operations	Management Accounting
Helps investors, creditors and others make investments, give credit and make other decisions	Financial Accounting
Information prepared contains both monetary and non-monetary transactions	Management Accounting
Information modified to fit the 'Generally Accepted Accounting Principles' (GAAP). Contains mostly monetary transactions and is audited by an independent auditor.	Financial Accounting
Uses historical and future(budget) information	Management accounting
Uses historical information only	Financial Accounting
Time span of financial reports is flexible (may be hourly daily or yearly)	Management accounting
Reports are detailed(e.g products, departments or territories)	Management Accounting
Reports are summarized	Financial Accounting
helps managers forsee the cost price and selling price of a product or service, which helps them formulates business policies	Cost Accounting
Uses information about the business	Management Accounting and Financial Accounting