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Mukta Joshi has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management.
1. Financial accounting focuses on providing information to internal users.
2. Staff positions are directly involved in the company’s primary revenue-generating activities.
3. Preparation of budgets is part of financial accounting.
4. Managerial accounting applies only to merchandising and manufacturing companies.
5. Both managerial accounting and financial accounting deal with many of the same economic events.
6. Managerial accounting reports are prepared only quarterly and annually.
7. Financial accounting reports are general-purpose reports.
8. Managerial accounting reports pertain to sub-units of the business.
9. Managerial accounting reports must comply with accounting standards.
10. The company treasurer reports directly to the vice president of operations.
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