Q1SE_b - 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):

b. Provides detailed reports on parts of the company.

Step-by-Step Solution

Answer

A company is a legal entity that carries out the business and the correct answer to this question is managerial accounting.

Step 1: Definition of Company

A company is defined as a business organization that is a legal entity that is formed by a group of people and operates a business enterprise.

Step 2: Identification of accounting

The detailed reports on the parts of the company are prepared for the internal users or the business managers to make better decisions for the company. So, the correct answer to this question is managerial accounting.