Question

1 - accounting: more than numbers

learning objective: contrast financial accounting with managerial accounting.

accounting is divided into two main categories: ______ accounting, which concentrates on external reporting, and ______ accounting, which emphasizes internal decision making.

a.) financial / managerial
b.) managerial / tax
c.) tax / auditing
d.) auditing / financial

Explanation:

Identify the learning objective

The learning objective is to contrast financial accounting with managerial accounting.

Analyze the first blank

The first blank describes accounting that "concentrates on external reporting." Financial accounting is the branch of accounting focused on providing information to external users, such as investors, creditors, and regulators.

Analyze the second blank

The second blank describes accounting that "emphasizes internal decision making." Managerial accounting is the branch of accounting that provides information to internal managers to help them plan, direct, and control business operations.

Match with options

The correct sequence to fill in the blanks is "financial" for the first blank and "managerial" for the second blank. This corresponds to option (a).

Answer:

• a.) financial / managerial (Correct answer)
• b.) managerial / tax
• c.) tax / auditing
• d.) auditing / financial