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Description Directions: 1.Discuss the concepts, principles, and theories from the textbook. 2.Cite the textbooks and cite any other sources if

September 20, 2024

Description

Directions:

1.Discuss the concepts, principles, and theories from the textbook.

2.Cite the textbooks and cite any other sources if appropriate.

ACT 500 – Dis 1
Management Accounting
Financial accounting and managerial accounting are subdivisions of accounting and play an
essential role within an organization.
Discuss the major differences between managerial and financial accounting then apply your
understanding to the following 4 scenarios. Discuss if these are managerial accounting or
financial accounting and why.
1. A company is looking to increase its gross profit by reducing costs for the upcoming
periods. To further investigate, the production manager pulls reports that detail costs in
the previous year. After discussions with the purchasing manager, he creates a budget
based on assumptions and estimates.
2. An investor researching profitable companies pulls quarterly reports of various
corporations. The reports are prepared according to GAAP with objective information
and focus on the business as a whole. Are the reports prepared using managerial or
financial accounting?
3. To fund its expansion in the upcoming year, Deacon Corporation negotiates a $4,000,000
loan with a local bank. The bank requires financial statements to ensure the company’s
ability to pay interest and repay the principal. Would Deacon Corporation use
managerial or financial accounting to create the reports for the bank?
4. During an audit, an agent looks at the company’s financial statements to verify that the
same accounting practices were used in the tax return for a certain expense. Would the
financial statements used by the agent be prepared using managerial or financial
accounting?
Directions:
1.
2.
3.
4.
5.
6.
7.
Discuss the concepts, principles, and theories from the textbook.
Cite the textbooks and cite any other sources if appropriate.
Text Not Image.
Unique Answer.
Avoid Plagiarism.
500-word limit.
AI is not allowed.
To Download Text Book Click Here >> (( TEXT BooK ACT 500 ))

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