Question

Which of the following would be an example of managerial or financial accounting?

1) Preparing a valuation of the company's assets to apply for a bank loan
2) Projecting sales to determine the amount of materials to purchase
3) Allocating the marketing expense to various departments

Answer 1

Preparing a valuation of the company's assets to apply for a bank loan is an example of managerial or financial accounting, involving the documentation of financial status for lenders. Thus, the option 1 is the correct answer.

Step-by-step explanation:

Among the examples provided, preparing a valuation of the company's assets to apply for a bank loan would be an example of managerial or financial accounting. This process is directly related to the acquisition and management of financial capital and is typically handled by the financial department of a company. It involves assessing and documenting the company's assets and liabilities to provide an accurate representation of the company's financial status for potential lenders.