Principles of Financial Accounting · free preview
The Importance of Accounting and the Financial and Managerial Split
Accounting organizes, analyzes, and communicates financial information for decision-making, and it splits into financial accounting for outside stakeholders and managerial accounting for internal planning and control.
1. Accounting as the language of decisions
Accounting as the language of decisions
2. Financial accounting serves those outside the organization
Financial accounting serves those outside the organization
3. Managerial accounting serves those inside the organization
Managerial accounting serves those inside the organization
4. Oversight protects the people who rely on the reports
Oversight protects the people who rely on the reports
5. Who uses financial accounting reports
Which group is the primary audience for financial accounting information?
6. Which activity belongs to managerial accounting
Which activity is an example of managerial accounting?
7. Why conventions exist
Why does financial accounting require standardized conventions while managerial accounting does not?
8. Oversight bodies
Which organization writes the generally accepted accounting principles used in United States financial reporting?
9. Term for external reporting rules
Complete the term. The common set of rules, standards, and procedures that United States companies follow when preparing financial statements is called generally accepted accounting ____.
10. CPA education requirement
How many semester hours of education does every state require before a candidate can earn the Certified Public Accountant license? Give the number only.
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