16-1SE_a - Horngren'S Financial And Managerial Accounting

Question

Comparing managerial accounting and financial accounting 

For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA): 

1. Helps investors make investment decisions

Step-by-Step Solution

Answer

Investment is something acquired with the motive of generating income and a financial statement is a correct option for this.

Definition of Investment

The Investment is defined as the asset or any other item which is acquired with the purpose of generating some revenue in the future

Indication of accounting

The correct answer for this statement is financial accounting. 

Explanation:

Financial accounting is used in this statement. This is because the investors will require a financial statement to assess the company whether the company is good for investing or not.