Management vs Financial Flashcards
1
Q
Accounting Information Management Accounting | Definition
A
- process of identifying, measuring, accumulating, analyzing. preparing, interpreting, communicating information that helps managers within an organization to fulfill organizational objectives
2
Q
Accounting Information Financial Accounting | Definition
A
- develops information for external decision makers such as investors, suppliers, banks, govenment authorities
3
Q
Who are the primary users of ManAcc and Financial Accounting?
A
- ManAcc: managers who plan and control an organization
- FinAcc: external persons such as investors, banks and government agencies
4
Q
What can be said about the freedom and rules of ManAcc and Financial Accounting?
A
- ManAcc: no constraints (benefits > costs of accounting system)
- FinAcc: must follow GAAP/IFRS and prescribed formats
5
Q
What is the time focus | ManAcc vs FinAcc?
A
- ManAcc: future emphasis, timely
- FinAcc: historical perspective
6
Q
What is the time span | ManAcc vs FinAcc?
A
- ManAcc: flexible, from hours to 10 years
- FinAcc: usually one year or one quarter
7
Q
Is it required | ManAcc vs FinAcc?
A
- ManAcc: not mandatory
- FinAcc: mandatory for external reports
8
Q
What can be said regaridng varifiability vs relevance?
A
- ManAcc: emphasis onn relevance
- FinAcc: emphasis on objectivity and verfiability
9
Q
What about the choics of accounting measures?
A
- ManAcc: choice should consider how measurements and reports influence managers behavior
- FinAcc: choice is based on how to measure and communicate economic phenomena
10
Q
A
11
Q
A
