Question:
- Managerial accounting provides all of the following financial information except:
- payroll summaries; budgets; production reports; monthly sales records; income statements
- Accounting involves the _____ of the financial activities for firms. (creation; delegating; empowering; summarizing; planning)
- Which of the following statements about the accounting profession is true?
- Accountants are typically classified as private or public accountants.
- Accountants cannot legally offer management consulting services
- Private accountants serve individuals and organizations on a fee basis.
- Public accountants work for local, state, and national agencies.
- All of the above statement about the accounting profession are true.
Answer:
1. Income statements is the financial information that is not provided by managerial accounting. Whereas the remaining ones are included in getting provided by the managerial accounting. Managerial accounting deals with the firm’s internal operations. Managerial Accounting helps with information that is primarily useful to managers in assisting them in their planning, managing, and make strategic decisions about the company’s growth and profitability. Sources of managerial accounting information are upper management, line employees, and financial results of the company’s operations.
2. Summarizing of the financial activities for firms is being involved in accounting. Whereas the remaining financial activities are not involved in accounting. Accounting is a process that includes recording, classifying, summarizing, interpreting, and communicating financial information about an organization to interested parties.
3. a. Accountants are typically classified as private or public accountants is the statement about the accounting profession that is true. Whereas the remaining statements are not true regarding the accounting profession. Most CPAs initially work for public accounting firms and then eventually become private accountants or financial managers.