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Comparing managerial accounting and financial accounting

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

e. Reports audited annually by independent certified public accountants.

Short Answer

Expert verified

Financial accounting is involved in the audit of reports annually.

Step by step solution

01

Definition of Audit

An audit is defined as an official inspection of the financial accounts of a business organization, by an independent body.

02

Identification of accounting

The correct option is financial accounting

The audit is done of the financial statement of the company to check the reliability of the financial statements. Financial accounting helps in the preparation of financial statements.

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Comparing managerial accounting and financial accounting

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

e. Reports audited annually by independent certified public accountants

Match the definition to the key term.

13. Triple bottom line

14. Value chain

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16. Enterprise resource planning

17. Total quality management

a. A cost management system in which a company produces products just in time to satisfy needs.

b. A philosophy designed to integrate all organizational areas in order to provide customers with superior products and services, while meeting organizational goals throughout the value chain.

c. Software system that can integrate all of a companyโ€™s functions, departments, and data into a single system.

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e. Includes all activities that add value to a companyโ€™s products and services

List the three inventory accounts used by manufacturing companies, and describe each.

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