Comparison of Financial and Management Accounting Exam verified solutions and explanations

Comparison of Financial and Management Accounting Exam verified solutions and explanations Reports to those outside the organization: owners, creditors, tax authorities, regulators - Correct Answers: Financial Accounting Emphasis is on summaries of financial consequences of past activities - Correct Answers: Financial Accounting Objectively and verifiability of data are emphasized - Correct Answers: Financial Accounting Precision is required - Correct Answers: Financial Accounting Only summarized data for the entire organization are prepared - Correct Answers: Financial Accounting Must follow GAAP - Correct Answers: Financial Accounting Independent audits are required - Correct Answers: Financial Accounting Mandatory for external reports - Correct Answers: Financial Accounting reports to those inside the organization for: planning, directing and motivating, controlling, performance evaluation - Correct Answers: Management Accounting Emphasis is on decisions affecting the future - Correct Answers: Management Accounting Relevance is emphasized - Correct Answers: Management Accounting Timeliness is required - Correct Answers: Management Accounting Detailed segment reports about departments, products, customers, and employees are prepared. - Correct Answers: Management Accounting Does not need to follow GAAP - Correct Answers: Management Accouting Independent audits are not required - Correct Answers: Management Accounting Not mandatory for external reports - Correct Answers: Management Accounting