Udemy - Managerial vs Financial Accounting

Question 1

What is the primary purpose of financial accounting?

Answer 1

To provide financial information to external stakeholders.

Question 2

True or False: Managerial accounting is primarily focused on internal decision-making.

Answer 2

True

Question 3

Fill in the blank: Financial accounting must comply with __________.

Answer 3

Generally Accepted Accounting Principles (GAAP)

Question 4

Which of the following is a key focus of managerial accounting? A) External reporting B) Internal management decisions C) Tax preparation

Answer 4

B) Internal management decisions

Question 5

What type of reports does financial accounting produce?

Answer 5

Financial statements such as balance sheets and income statements.

Question 6

True or False: Managerial accounting reports are usually more detailed than financial accounting reports.

Answer 6

True

Question 7

What is a common tool used in managerial accounting for budgeting and forecasting?

Answer 7

Variance analysis

Question 8

Multiple Choice: Which accounting type is more likely to use cost-volume-profit analysis? A) Financial Accounting B) Managerial Accounting

Answer 8

B) Managerial Accounting

Question 9

Short Answer: Name one regulatory body that oversees financial accounting.

Answer 9

The Financial Accounting Standards Board (FASB)

Question 10

What is the time frame focus of financial accounting?

Answer 10

Historical data over a specific reporting period.