Chapter 9

Question 1

What is management accounting?

Answer 1

provide information and analysis to decision-makers inside the organization in order to help them run it.

Question 2

What is financial accounting?

Answer 2

furnish information to individuals and groups both inside and outside the organization in order to help them assess its financial performance.

Question 3

What does managemnt account supply?

Answer 3

relevant, accurate, timely information that will aid managers in making decisions.

Question 4

What are financial accountants responsible for?

Answer 4

preparing the organization’s financial statements—including the income statement (also called the profit/loss statement), the statement of owner’s equity, the balance sheet, and the statement of cash flows

Question 5

What is the purpose of financial statements for owners and managers?

Answer 5

They show, whether the company did or didn’t make a profit and furnish other information about the firm’s financial condition as well as corrective action needed

Question 6

What is the purpose of an invenestor/creditor?

Answer 6

furnish the money that a company needs to operate, and not surprisingly, they want to know how that business is performing.