Q13E - Horngren'S Financial And Managerial Accounting

Question

Comparing managerial accounting and financial accounting 

Match the following terms to the appropriate statement. Some terms may be used more than once, and some terms may not be used at all. 

Directing                  Managerial 

Creditors                  Managers 

Controlling               Planning 

Financial                  Stockholders 

a. Accounting systems that must follow GAAP. 

b. External parties for whom financial accounting reports are prepared. 

c. The role managers play when they are monitoring day-to-day operations and keeping the company on track. 

d. Internal decision makers. 

e. Accounting system that provides information on a company’s past performance. 

f. Accounting system not restricted by GAAP.

 g. The management function that involves choosing goals and deciding how to achieve them

Step-by-Step Solution

Answer

Financial accounting helps in preparing financial statements and the matching is shown in step 2.

Step-by-Step Solution Step 1: Definition of financial accounting

Financial accounting is defined as the branch of accounting which helps in the preparation of a financial statement of the business.

Step 2: Matching

Statements	Terms
A	Financial Accounting
B	Creditors and Stockholders
C	Controlling
D	Managers
E	Financial Accounting
F	Managerial Accounting
G	Planning