Q. 1SE - Horngren'S Financial And Managerial Accounting

Question

Identifying users of accounting information For each user of accounting information, identify if the user would use financial accounting or managerial accounting. a. investor e. controller b. banker f. stockholder c. IRS g. human resources director d. manager of the business h. creditor

Step-by-Step Solution

Answer

a	Financial Accounting	e	Managerial Accounting
b	Financial Accounting	f	Financial Accounting
c	Financial Accounting	g	Managerial Accounting
d	Managerial Accounting	h	Financial Accounting

Step1: Explanation of Financial Accounting

Financial accounting focuses on providing information to the external decision makers such as investors, bankers, IRS, stockholders, and creditors. 

Step2: Explanation of Managerial Accounting

Managerial accounting focuses on providing information to the internal decision-makers such as management, controllers, human resource director, etc.