Question

Financial and managerial accounting are similar in that both:

a) have reports that are prepared quarterly and annually.
b) deal with the economic events of an enterprise.
c) have the same primary users.
d) produce general-purpose reports.

Answer 1

b) deal with the economic events of an enterprise. Financial and managerial accounting are similar in that both deal with the economic events of an enterprise, but they differ in terms of their primary users and the types of reports they produce.

Step-by-step explanation:

Financial and managerial accounting are similar in that both deal with the economic events of an enterprise. They both involve the recording, analyzing, and reporting of financial information to help businesses make informed decisions. The reports produced in both types of accounting can be used by various stakeholders, including managers, investors, and creditors.

For example: Financial accounting focuses on providing external users, such as shareholders and investors, with general-purpose financial statements like balance sheets, income statements, and cash flow statements. These reports help stakeholders assess the financial health of a company.

Managerial accounting, on the other hand, provides internal users, such as managers and executives, with specialized reports and analyses to support decision-making within the organization. These reports may include budgeting, cost analysis, and performance measurement.