Managerial Accounting- Exam 1 questions with correct answers

What is the primary purpose of Managerial Accounting? Correct Answer-Assisting Managers What are some characteristics of managerial accounting? Correct Answer--no rules (no GAAP) -not mandatory -insiders -is dealt with in segments -relevance -focuses on the present/future *decision making, planning, controlling What are some characteristics of financial accounting? Correct Answer--uses GAAP -mandatory -outsiders -company wide -precision -uses past information -reports to those outside the organization: owners, creditors, tax authorities, regualtors... How does managerial accounting assist managers with their responsibilities to the company's stakeholders? Correct Answer-Prepare budgets, communicate the financial information.